In a major move that affects Queensland drivers, RACQ, the state’s largest insurer, has announced that it will no longer offer compulsory third party (CTP) insurance. The decision comes after years of significant financial losses operating the scheme, despite having serviced more than 25,000 people injured on Queensland roads for the past 20 years.
The RACQ’s chief executive officer, David Carter, said the scheme was no longer viable. This leaves Queensland drivers in a difficult position; they officially only have one other option available for CTP insurance, the government-owned insurer, RACQ Insurance Limited.
“Although the scheme’s design is intended to make all participating insurers profitable, in recent years, RACQ has incured significant losses due to a deterioration of its risk profile, which is not its fault,” Mr Carter said.
Queensland drivers will have no need to worry about their CTP premiums rising due to the RACQ’s resolution, as these premiums are regulated by the Motor Accident Insurance Commission (MAIC), as stated by the spokesman of Queensland Treasurer Cameron Dick.