Pressure is building on Queensland and Western Australia to reform compulsory third party (CTP) insurance schemes, as they are now the last two states to do so.

On July 1, South Australia and the Australian Capital Territory removed at-fault compulsory third party (CTP) insurance schemes, instead moving to the no-fault operations system. Under this scheme, drivers who suffer catastrophic injuries in an accident will receive lifetime care.

CTP insurance is a requirement throughout Australia if one hopes to register a motor vehicle, but the insurance isn’t universal across the country. The breadth of cover under CTP varies between states and territories – often significantly.

Executive General Manager with Suncorp Commercial Insurance, Chris McHugh, explained the necessity of the new system, and why QLD and WA need to move forward with implementation. He outlined how drivers in at-fault jurisdictions who make small errors of judgement could be without cover – and out of pocket substantially.

“Many motorists are not aware that their coverage changes depending on where they are in Australia,” Mr McHugh explained.

“Someone in Tweed Heads, NSW, who decides to drive to Coolangatta, Queensland, for lunch could find that meal ultimately costs them millions of dollars.”

South Australia is set to see the scheme go into effect in 2016, whereupon full privatisation will take place. Following implementation, Australians should find interstate travel a safer prospect.

Of course, Queensland and Western Australia will need to follow with similar schemes.

To illustrate the cost impacts, a whitepaper released by insurance company Suncorp researched the impacts. Suncorp is a provider of general and business insurance products.

The most serious injuries on the road in Queensland accounted for 0.2 per cent of the total number of claims, but around 10 per cent of all claim costs. It’s easy to see how debilitating these costs could be for Australians.