Government to revamp car insurance claims process

Mozo

Wednesday 29 February 2012

Drivers who are involved in a road traffic accident are currently finding that making a car insurance claim can be a lengthy process.

At present, motorists are only covered by compulsory third party insurance (CTP) if one of the people involved in the collision is deemed to be at fault.

Treasurer Jack Snelling is now calling for an end to this process, as it is too expensive for the Motor Accident Commission to launch an investigation into an incident in order to apportion blame on to someone, the Adelaide Advertiser reports.

Instead, Mr Snelling wants to see a "no fault" system introduced, which would save the commission huge sums of money in the long run.

However, insurance experts have argued that this could result in lower payouts for Aussies who have had a collision that was not their fault.

RAA Insurance recently revealed that it dealt with 33,400 claims in the past two years, the Herald Sun reported, which highlights the scale of the issue.

"A no-fault scheme, carefully implemented, would be more just, provide better outcomes for the injured and remove some of the burden from South Australian taxpayers," Mr Snelling added.

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Government to revamp car insurance claims process
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