Compulsory third party for riders, not motorbikes

Riders should pay compulsory third party (CTP) insurance only once for themselves, not for each motorcycle they own, says the Motorcycle Council of NSW Chairman Steve Pearce (above).

He says it is the rider that is the insurance risk, not the motorcycle.

“If you buy a motorcycle, the insurance risk is based on you and your experience, skill, where you live, etc,” Steve says.

“If you then sell the bike, why should the risk be the same for the new owner who lives in a different place and has different riding skills and experience?”

Steve says the government would never let go of the revenue from registration for each vehicle, but it would be the fat-cat insurance companies that would miss our on revenue under his rider-based compulsory third party scheme.

“The insurance companies are getting rich off our CTP and it’s a rort,” he says.

“They know they are on a good thing with CTP because only 5% of all registered vehicles are on the road at any one time.

“So 95% of vehicles are in garages or on the side of the road, but still paying for CTP.

“Insurance companies are only at risk at 5% of the time which is where their profits are coming from.

“Riders are paying premiums for services when they are not at risk.”

Steve would like to see Australia move to an American system where the rider insures themselves rather than the vehicle.

“That takes all this nonsense of every vehicle having an insurance for risk whether it used or not.

“It’s a better way to measure risk as well.”Melting tar claims first crash victim Mt Glorious costly engineers events steal reservations bitumen compulsory

Rider’s view

Ron Germain says he had a motorcycle accident near Ashford in NSW in August 2018 after hitting a huge bump in the road.

“It forced me off the road and I hit a culvert and a tree, breaking ribs and pelvis, etc and wiping out my bike,” Ron says.

“I was told to apply on third-party insurance for pain and injury. However, I was subsequently told by a high-profile law firm in NSW that I have no third-party claim against the NSW government as they (the government) were no longer allowing claims for injuries caused by bad road maintenance.

Insurance review

Steve says there needs to be a review of the insurance industry along the lines of the banking industry inquiry.

“I don’t know how we terminate it,” he says.

“We need wholesale government support, but I fear the insurance lobby is too big and too rich for us to win.”

The NSW Labor opposition has promised a review of the motor accident and workers compensation schemes.


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