Minister announces modest increase compulsory third party insurance - premium income 2001-02

17/4/01 Assistant Treasurer Nick Griffiths today said that the State Cabinet had endorsed a modest increase of two per cent for the majority of motor vehicles compulsory third party insurance.

17/4/01
Assistant Treasurer Nick Griffiths today said that the State Cabinet had endorsed a modest increase of two per cent for the majority of motor vehicles compulsory third party insurance.
This decision means only a $4.75 increase in the premium for a private motor vehicle to a total of $243.20.
The two per cent increase applies to 13 of the 19 motor vehicle classifications, and accounts for approximately 80 per cent of all vehicles.
Overall, the compulsory third party insurance premium income for 2001-02 will increase by only 3.6 per cent.
Mr Griffiths said this increase was a prudent decision that has been kept in line with inflation and the increase in average weekly earnings.
The decision has been made in accordance with actuarial advice based on the revised investment projections and the projected number of claims per annum.
The Minister also said that despite the modest increase, Western Australia will remain the lowest third party personal insurance provider in Australia for a private motor vehicle.

States

$
Western Australia243.20
Tasmania271.00
South Australia277.00
Queensland*286.00
Victoria297.00
New South Wales*343.00
Northern Territory360.80
Australian Capital Territory369.05
*Estimated average cost amongst the private insurers

The numbers quoted in the above table are valid up until June 30, 2001 the expectation being that all will increase from July 1, 2001, which makes the Western Australian premium even more competitive.
"The State Government has kept the increase to the absolute minimum. As a result of the increase, WA remains the State with the lowest premium insurance rates," Mr Griffiths said.
"The Government has considered carefully the effect on motorists and made a financially responsible and fair decision".
Media contact:
Melissa Robinson 9222 8950 (w)

COMPULSORY THIRD PARTY INSURANCE 2001-2002 PREMIUM REQUIREMENTS

CLASS NO.

VEHICLE CLASSIFICATION
*Further description details
follow as part of Attachment 2

CURRENT PREMIUM
(inclusive of 10% GST)
$

NEW PREMIUM
FROM 1/7/2001
(inclusive of 10% GST)
$

TOTAL %
INCREASE/
(DECREASE)		NO. OF VEHICLES (As at 28/2/2001)

1A

PRIVATE MOTOR VEHICLE

238.45

243.20

2.0

998,321

1B

AMBULANCE, FIRE BRIGADE,
UNDERTAKERS

114.75

117.05

2.0

1,345

2

GOODS VEHICLE, ie UTILITY, VAN, TRUCK

209.00

229.90

10.0

305,562

3A

HIRE VEHICLE LICENSED TO CARRY 8 OR MORE PERSONS - METRO AREA

1,262.50

820.65

(35.0)

1,038

3B

VEHICLE LICENSED TO CARRY 8 OR MORE PERSONS - OUTSIDE OF METRO AREA

433.70

442.35

2.0

863

3C

TAXI OPERATING IN METRO AREA

1,078.10

1,099.65

2.0

1,011

3D

TAXI OPERATING OUTSIDE OF METRO AREA

296.55

302.50

2.0

370

3E

SCHOOL BUSES

154.85

193.55

25.0

1,175

3F

ANY VEHICLE USED FOR HIRE
NOT INCLUDED IN 3A TO 3E

345.95

352.85

2.0

920

3G

HIRE & DRIVE YOURSELF

296.55

302.50

2.0

10,936

4

MOTOR CYCLE

134.15

136.85

2.0

41,444

5A

MOTOR TRADE

56.70

57.85

2.0

1,949

5B

MOTOR TRADE - MOTOR CYCLE

86.85

88.60

2.0

63

5C

TOW TRUCK

57.75

229.90

298.1

269

6

TRAILER, CARAVAN

5.55

5.65

2.0

303,771

7A

VETERAN CARS, FARM FIRE FIGHTING VEHICLES, MOTOR CYCLES LESS THAN 75CC's

16.45

16.80

2.0

6,338

7B

FORKLIFT, FARM TRACTOR

25.90

34.50

33.3

36,527

8A

TRACTOR PLANT (Class C Licence)

83.45

111.25

33.3

827

8B

MOTOR CRANES

591.55

603.40

2.0

891


Published
17 April 2001
Ministers

Hon. Nick Griffiths

Former Minister for Housing and Works; Racing and Gaming; Racing and Gaming; Government Enterprises; Land Information
See all media statements from this Government