Car insurance in Australia -- L-assigurazzjoni tal-karozzi fl-Awstralja

 

I often mention elements of life noticed to be different between Australia and Malta.  One of the first of these I had noticed was car insurance.

 

I remember after buying a car, I had done some research on the three products I was familiar with in Malta - third party insurance (insurance to cover health and property of third persons, which did not include the driver taking up the insurance); third party fire & theft (which added to the previous one insurance against fire and theft of the insurance buyer) and comprehensive (which added to the previous complete coverage of the vehicle of the insurance buyer).

 

The first surprise was that in Australia, insurance of the health and property of third parties is separated: so-called compulsory third party (CTP), which includes only the health of third parties and does not include property, and third party property (which covers property).  The first has to be purchased in any case, if one wants to register a vehicle in Australia.  One can change third party property with a comprehensive policy to add insurance.

 

In other words, someone used in Malta just to buy a comprehensive policy, in Australia need to buy two policies: CTP and comprehensive.

 

Anyway after I thought I knew enough about the subject, I chose a company I thought had good conditions, and during a work pause went to make a quick errand in one of their offices close by.  I quickly discovered a second difference - not all companies offered insurance to everybody!  In Malta I was used to having to pay a bit more if under 25 years of age, but this company asked me what car type I owned, and as soon as this was identified, informed me that that car was uninsured - they only insured 'classic' cars!  Goody.

 

I quickly found other companies of which I chose another, and then discovered the third difference: the price, which I thought was very high when compared to Malta, especially when adding the two insurance types, mentioned previously, together.

 

After a year, and then yearly thereafter, when I went to renew, I discovered a fourth difference, and this is particular to NSW.  In the case of comprehensive insurance, the price remains approximately the same year after year even when the value of the car declines every year and the other parameters, such as excess, are kept the same.

 

In the case of CTP, whose price does not depend on the car's value, each year's price is higher than the previous one, so much so that in 2016 I paid above $700 which is more than double what I had paid ten years previously.

 

This state has particular circumstances that have resulted in NSW being the most expensive state to purchase CTP insurance, with prices double those in Tasmania, Queensland and West Australia.1  I'll mention just a few.

 

Firstly, for an injured person to request a benefit under the scheme, it needs to prove that another diver was at fault (tort), and this process often takes 2-5 years, with various professionals involved.  When the at fault vehicle is not insured, the claim can still be made.

 

There are also exceptions of some benefits that are paid even without fault being determined, or for children under 16 years of age.

Benefits include medical expensies, both past and future, rehabilitation, even loss of earnings and others.  Payments are usually of a lump sum nature except for medical expenses.

 

Companies providing this type of insurance increase their yearly fees in order to remain in front.  And it seems they are way in front!

 

In fact, only around 45% of fees paid yearly by drivers for their CTP insurance are paid as benefits.  Legal and investigative fees take 18% of fees, company expenses add up to 15%, the scheme administration costs 3% and last but certainly not least, insurance company profits add up to 19% of fees2 - in other words, insurance company profits are higher than their own expenses!

 

Not only this, but this profit is double even that estimated by the insurance companies themselves!3  Apart from taking the mickey (and the nickel) out of consumers, they're doing the same to government, which is responsible for regulating this industry.

 

The NSW government has undertaken a consultation (ended in April 2016) on how the CTP industry can be reformed, and another (ended in November 2016) on the profits of CTP insurance companies.  I'm waiting to see what decisions are taken by government.

 

But no hurry, mate, take it easy.

 

Now where is my credit card?  Well, I do need to renew my car's registration, what can I do?  Could I wait perhaps?

 

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Spiss nitkellem fuq xi aspett tal-ħajja li nnutajtha differenti bejn l-Awstralja u Malta.  Waħda mill-ewwel li nnutajt kienet il-qasam tal-assigurazzjoni tal-karozzi.

 

Niftakar li wara li xtrajt karozza, kont għamilt ftit tiftix fuq it-tliet prodotti li kont familjari magħhom f'Malta - third party (assigurazzjoni fuq is-saħħa ta' terzi persuni u l-proprjetà tagħhom, li ma tinkludi xejn lis-sewwieq li qed jieħu l-assigurazzjoni), third party fire and theft (li ma' ta' qabel iżżid assigurazzjoni kontra ħsara mill-ħruq u s-serq tal-karozza tal-inxurjattas-sewwieq) u comprehensive (li ma' ta' qabel iżżid assigurazzjoni kompluta tal-vettura tal-inxurjat).

 

L-ewwel sorpriża kienet li fl-Awstralja, l-assigurazzjoni fuq is-saħħa u l-proprjetà ta' terzi persuni hija mifruda:  cumpulsory third party, li jinkludi biss assigurazzjoni fuq is-saħħa ta' terzi persuni, u li ma jinkludix proprjetà, u third party property (assigurazzjoni fuq il-proprjetà ta' terzi persuni).  L-ewwel waħda hija ta' bilfors, trid tinxtara dejjem, jekk wieħed irid jirreġistra vettura fl-Awstralja.  Wieħed jista' jibdel third party property ma' polza comprehensive li żżid magħha assigurazzjoni fuq il-vettura tas-sewwieq.

 

Fi kliem ieħor, persuna li f'Malta imdorri jixtri polza comprehensive, fl-Awstralja jrid jixtri żewġ poloz, waħda compulsory third party (CTP) u l-oħra comprehensive.

 

Insomma wara li ħsibt li naf biżżejjed fuq is-suq, għażilt kumpannija li ħsibt li kellha kundizzjonjiet tajbin, u waqt waqfa mix-xogħol mort biex nagħmel qadja ta' malajr f'uffiċċju tagħhom li kien qrib.  Malajr skoprejt it-tieni differenza - mhux il-kumpannija kollha joffru assigurazzjoni lil kulħadd!  Jien f'Malta kont imdorri li jekk tkun taħt il-25 sena, trid tħallas daqsxejn iktar, imma din il-kumpannija staqsietni x'karozza kelli, u malli identifikajtha, qaluli li dik il-karozza ma jinxjurjawhiex, għax huma jispeċjalizzaw biss f'karozzi klassiċi!  Tajjeb ukoll!

 

Malajr sibt kumpanniji oħra li għażilt waħda minnhom, imma hawnhekk skoprejt it-tielet differenza - il-prezz, li rajtu għoli mmens meta mqabbel ma' Malta, u speċjalment meta tgħodd iż-żewġ tipi ta' assigurazzjoni flimkien.  

 

Wara sena, u sena wara sena, meta mort biex inġedded, skoprejt ir-raba' differenza, u din hija partikulari għal NSW.   Fil-każ tal-assigurazzjoni comprehensive, il-prezz bejn wieħed u ieħor dejjem jibqa' l-istess sena wara sena anke jekk il-valur tal-vettura jonqos kull sena u l-parametri l-oħra, bħall-eċċess li jitħallas ma' talba għal benefiċċju, jinżammu l-istess.  Fil-każ tas-CTP, li l-prezz tiegħu ma jiddependix fuq il-valur tal-vettura, il-ħlas ta' kull sena dejjem jitla', tant li fl-2016, ħallast fuq $700 li hu iktar mid-doppju ta' dak li kont ħallast għaxar snin qabel.

 

Dan l-istat għandu ċirkustanzi partikulari li wassluh li jkun l-iktar stat għali fejn wieħed jixtri s-CTP insurance, bi prezzijiet id-doppju ta' dawk f'Tasmania, Queensland u West Australia.1  Ħa nsemmi biss xi wħud.

 

L-ewwel ħaġa, biex persuna li weġġgħet tkun tista' tagħmel talba għal benefiċċju mill-iskema, trid tipprova li kien hemm sewwieq ieħor li kellu tort, u dan proċess li spiss idum bejn 2 sa 5 snin b'diversi professjonisti involuti.  Fejn vettura li tkun ikkawżat l-inċident ma' tkunx assigurata, it-talba xorta tkun tista' ssir.

 

Hemm ukoll eċċezzjonijiet ta' xi benefiċċji li jitħallsu anke fejn m'hemmx tort, jew għal tfal taħt is-sittax-il sena.

 

Il-benefiċċji jinkludu spejjeż mediċi tal-passat u tal-futur, rijabilitazzjoni, u anke nuqqas ta' dħul u oħrajn.  Il-ħlas ġeneralment ikun ta' darba (lump sum) ħlief dawk mediċi u servizzi relatati.

 

Il-kumpanniji li joffru dan it-tip ta' assigurazzjoni jżidu l-ħlasijiet ta' kull sena biex ma joħorġux minn taħt.  U minn taħt jidher ċar li mhux qed joħorġu.

 

Fil-fatt, madwar 45% biss tal-ħlasijiet ta' kull sena mis-sewwieqa għax-xiri tal-assigurazzjoni CTP jitħallsu bħala benefiċċji.  Spejjeż legali u investigattivi jitilgħu għal madwar 18% tal-ħlasijiet, l-ispejjeż tal-kumpanniji tal-assigurazzjoni jlaħħqu 15%, amministrazzjoni tal-iskema tieħu 3%, u fl-aħħar imma ċertament mhux l-inqas, il-profitt tal-kumpanniji tal-assigurazzjoni jieħdu 19%2 - fi kliem ieħor, il-profitt għall-kumpanniji tal-assigurazzjoni huwa iktar għoli mill-ispejjeż tagħhom!

 

Mhux hekk biss, imma dan il-profitt huwa d-doppju ta' dak mistenni mill-kumpanniji nfushom!3  Apparti milli qed jgħaddu passata lill-konsumaturi, qed jgħaddu passata wkoll lill-gvern, li huwa responsabbli mir-regolamenti li jgħaddi fuq l-industriji.

 

Il-gvern ta' NSW ħareġ konsultazzjoni (li waqfet f'April 2016) fuq kif tista' tiġi riformata l-industrija tas-CTP, u oħra (li waqfet f'Novembru 2016) fuq il-profitt tal-kumpanniji tal-assigurazzjoni tas-CTP. Bħalissa qed nistenna biex nara x'deċiżjonijiet se jieħu l-gvern.

Imma m'hemmx għaġġla, tafx.  X'hemm bżonn?

 

Issa fejn marret il-kredit kard?  Ħeqq, għandi bżonn inġedded ir-reġistrazzjoni tal-karozza, x'tagħmel?  Tgħid nistenna?

 

1On the road to a better CTP scheme; State Insurance Regulatory Authority (SIRA); NSW Government; 2015; p. 9

2Ibid; p. 6

3Ibid; p. 13

1On the road to a better CTP scheme; State Insurance Regulatory Authority (SIRA); NSW Government; 2015; p. 9

2Ibid; p. 6

3Ibid; p. 13