❓ Opposition questions Treasurer about a $190M transfer from the third party insurance fund, citing concerns about premium increases and fund diversion. Treasurer defends the transfer as internal, addressing historical liabilities and future scheme enhancements, while highlighting WA's low CTP premiums.
AnsweredQoN 938Legislative Council
QuestionView source ↗
THIRD PARTY INSURANCE FUND - TRANSFER
I refer the Treasurer to the transfer of $190 million from the third party insurance fund. (1) Why did the Treasurer approve the transfer? (2) Will the Treasurer explain why third party insurance payments and investment fund earnings should be diverted to pay for other government approved insurance activities undertaken by the Insurance Commission? (3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH
I refer the Treasurer to the transfer of $190 million from the third party insurance fund. (1) Why did the Treasurer approve the transfer? (2) Will the Treasurer explain why third party insurance payments and investment fund earnings should be diverted to pay for other government approved insurance activities undertaken by the Insurance Commission? (3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH
AnswerView source ↗
I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(1) Why did the Treasurer approve the transfer? (2) Will the Treasurer explain why third party insurance payments and investment fund earnings should be diverted to pay for other government approved insurance activities undertaken by the Insurance Commission? (3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(2) Will the Treasurer explain why third party insurance payments and investment fund earnings should be diverted to pay for other government approved insurance activities undertaken by the Insurance Commission? (3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(1) Why did the Treasurer approve the transfer? (2) Will the Treasurer explain why third party insurance payments and investment fund earnings should be diverted to pay for other government approved insurance activities undertaken by the Insurance Commission? (3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(2) Will the Treasurer explain why third party insurance payments and investment fund earnings should be diverted to pay for other government approved insurance activities undertaken by the Insurance Commission? (3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(3) Will the Treasurer explain why motorists should pay higher third party premiums as a result of significant financial assets being diverted out of the third party fund? Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
Hon LJILJANNA RAVLICH replied: I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
I thank the Leader of the Opposition for some notice of this question. (1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(1) The transfer is an internal transfer from the third party insurance fund to the Insurance Commission general fund and does not affect the consolidated finances of the Insurance Commission of Western Australia whose assets at 30 June 2006 were $577.2 million. The transfer is to fully fund liabilities underwritten by the consolidated fund, which originate as a consequence of insurance policies issued by the now defunct State Government Insurance Office to general industry employers. The majority of claims arise from asbestos exposure in the mining industry; that is, Wittenoom workers between 1943 and 1967 whilst employed by Midalco Pty Ltd-CSR Ltd. The Insurance Commission general fund has borne liabilities such as Insurance Commission employee entitlement liabilities for superannuation and long-service leave, which arguably should be proportionally borne by the third party insurance fund. The transfer is to partition off moneys from the third party insurance fund to facilitate emerging considerations, such as possible enhancements of the motor vehicle compulsory third party - personal injury - scheme. (2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(2) On 29 June 1996 the government made a one-off consolidated fund payment of $74.8 million to the third party insurance fund. The payment did not arise from funds sourced from the motorists of Western Australia. The present value of the $74.8 million, based on the Insurance Commission’s projected investment returns over the period to 30 June 2006, was estimated to be $188 million. (3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
(3) Western Australia has the lowest compulsory third party premium rates in the country. CTP premium rates for major motor vehicle categories in Western Australia have not increased for three years - that is, from 1 July 2003 to 30 June 2006 - and this government introduced a 10 per cent reduction in premiums, which came into effect from 1 July 2006. This has resulted in the cost of CTP premiums for Western Australia being some 20 per cent less than those in the next lowest state and 47 per cent less than those in the highest state. Notwithstanding the 10 per cent reduction in premiums and the $190 million transfer, the third party insurance fund retains a ratio of assets over liabilities - that is, solvency ratio - of 129 per cent.
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