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History

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CTP insurance in South Australia began in 1936 with a legislative requirement for vehicle owners to obtain cover from the private insurance industry. The requirements were re-stated in the Motor Vehicles Act 1959. In 1974, legislation was passed to make the State Government Insurance Commission (SGIC) the sole insurer.

MAC, in its current form, came into being on 1 July 1995 when the State Government Insurance Commission (SGIC) was corporatised before being sold to SGIO and Legal and General. The SGIC Statutory Authority retained those parts of SGIC that were not offered for sale, and the Authority was then renamed the Motor Accident Commission.

MAC took on responsibility for all of the former SGIC businesses, activities and investments that were not sold, including CTP insurance, management of the run-off of inwards (overseas) reinsurance, and commercial mortgage guarantee insurance.

Operation and management of the CTP Fund, including solvency, is the responsibility of MAC and is supported ultimately by a Government guarantee.

The Motor Accident Commission Act 1992 establishes the Board of Directors as the governing body of MAC. The Board is also subject to direction by the Minister. The Act specifies the preparation of a Charter by the Treasurer in consultation with the Board. It details the nature and scope of MAC’s activities.

The Charter provides for the conduct of the CTP insurance business and fund management, the outsourcing of claims management, the provision of support for anti-fraud campaigns and clarifies MAC’s statutory responsibility to support road safety initiatives.

Under the Charter, MAC is required to contract out the management of claims to a manager (or managers) approved by the Minister. SGIC General Insurance Limited (SGIC) provided this service from 1995 to 30 June 2003, after which Allianz Australia Ltd became responsible.

The independent Third Party Premiums Committee sets maximum CTP premiums. The Committee is required to determine rates on a fair and reasonable basis and allow for appropriate levels of funding and return.

Along with its insurance responsibilities, MAC today manages South Australia’s Road Safety Communications Program. It also funds a range of crash prevention, medical research and rehabilitation programs, which are selected based on the contribution they can make to reduce road injury, trauma and deaths in South Australia.