Compulsory motor vehicle accident insurance premiums have fallen by more than $50 since the ACT adopted a no-fault scheme more than three years ago, the government has said.
Special Minister of State Chris Steel said the scheme would be subject to a legislated review required to consider the first three years of operation.
The scheme has paid more than $30 million to injured individuals and has received more than 1200 applications for personal injury benefits.
Mr Steel said the scheme had made it cheaper and easier for Canberra motorists to access compulsory insurance and fast support if involved in accidents.
"Since the motor accident injuries scheme commenced on 1 February 2020, there has been a $53.15, or 11.6 per cent, reduction in the average passenger vehicle premium," Mr Steel said.
"This represents a change in the average passenger vehicle premium from $458.30 at the start of the MAI scheme, which will fall to $405.15 effective 22 August 2023. The average takes into account the four insurers' premium offering for a passenger vehicle."
Mr Steel said the median time frame for a recipient to receive their first payment after a completed application was 12 days, while income replacement payments took a median 28 days.
The scheme was introduced on February 1, 2020 and replaced the compulsory-third party insurance scheme. Its design was informed by a randomly selected citizens' jury process.
The new motor accident injuries scheme covers treatment, care and lost income costs for up to five years regardless of who was at fault in a motor vehicle accident.
"This is different to the previous scheme that only covered people injured by an at-fault driver (third parties)," the government says.
The review of the scheme will assess access to benefits, the efficiency of insurance premiums and the motor accident insurance scheme commission's work to promote motor accident prevention.
Four insurers are licensed to operate in the scheme: AAMI, APIA, GIO and NRMA.
"Premiums collected in a given year are to cover the current and future costs of personal injuries from motor accidents that occur in that year. For example, the premiums collected in 2022 are paid out over many years until all the 2022 personal injury accident applications and claims are finalised," the government said.
A public consultation period on a discussion paper, released as part of the review, is open until September 29.
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