Updates to version 9.2 of the Motor Accident Guidelines
The State Insurance Regulatory Authority (SIRA) regularly reviews and updates the Motor Accident Guidelines (the MAGs) to ensure that the CTP Scheme is functioning optimally and that it continues to support the objectives of the Motor Accident Injuries Act 2017.
This summary of changes table outlines what has changed from the previous version of the MAGs (version 9.1), and the rationale for the proposed changes.
Clause | Proposed change | Rationale |
|---|---|---|
Page 2 Commencement | Amendment | Commencement date and version numbers updated. |
| Part 1 | ||
1.2 | Amendment | Date amended – Part 1 of version 9.2 is effective for policies that come into effect on or after 15 January 2024. Additional text inserted to make clear that Part 1 of version 9.1 continues to apply for policies that come into from 15 January 2023 to 14 January 2024. |
| 1.13(i) | Amendment | The amendment confirms that insurers cannot propose charging higher CTP premiums to cover the cost of any commissions or other remuneration paid. This amendment clarifies the intention of this clause in response to queries to SIRA from some insurers about the current wording. |
| 1.18, 1.72, Table 1.3 | Amendment | Improved terminology to clarify that the purpose of these clauses relates to insurer premium filings. References to “the Authority’s costing assumptions” for the Scheme are now used instead of “the Authority's independent actuary’s costing assumptions”. While the Authority’s assumptions are informed by actuarial and other financial advice, the new wording makes it clearer that the assumptions in Part 1 are those of the Authority and not a third party. |
| 1.19(a) & (b) | Deletion | Consequential changes following the commencement of the Motor Accident Guidelines: Determination of Insurance Premiums for Taxis and Hire Vehicles – Version 2, July 2023 |
| 1.19 – 1.20 | Amendment | Improved terminology to clarify that the Schedule of Premium Relativities is provided to insurers in the motor accident filing template and not published elsewhere by SIRA. |
| 1.35-1.37 | Amendment | Clause 1.36 premium discounts for new non-fleet class 1 vehicles are no longer mandatory and insurers will have the discretion to apply discounts. To support this, a consequential amendment to clause 1.36 clarifies that if a bonus limit is applied under clause 1.36, then the bonus malus limits in clauses 1.35 and 1.37 do not apply. Consequential amendments to clauses 1.35 (Table 1.1) and 1.37 support the operation of clause 1.36. This amendment supports autonomy for insurers. |
| 1.38 | Addition | An entity or registered operator may insure third-party policies with one or more insurers. This amendment supports increased competition in the market. |
| 1.38 | Amendment | Improved clarity by separating ‘related entity’ and ‘registered operator’ terms. |
| 1.61 | Amendment | The amendment clarifies that the maximum rates of assumption are prescribed in clause 1.60 and not elsewhere. |
| 1.64 | Amendment | Correction of typographical error. |