Legislation

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Operation and management of the CTP Fund is the responsibility of MAC and is supported ultimately by a Government guarantee. Compulsory Third Party (CTP) insurance is governed by South Australian legislation, in part of three Acts of State Parliament: the Motor Vehicles Act 1959, Civil Liability Act 1936 and the Motor Accident Commission Act 1992.

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.