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VIC TAC makes $1.5b loss

Discussion in 'Politics, Laws, Government & Insurance' started by fekkinell, Nov 1, 2009.

  1. http://www.heraldsun.com.au/news/losses-spark-concern-over-tac/story-e6frf7jo-1225793172655

    Why do politicians make an absolute cock of things, then hide behind rhetoric such as 'despite the impact of the global financial crisis'?

    Actually, don't answer that.


  2. Explains the vast increase in premiums we've been seeing... How much does CTP cost you guys up in NSW?
  3. What's disturbing is the dividend that the government demands despite how TAC is performing.

    I suppose that one of the problems with TAC is that pubic servants run it. Now, given that it is making such heavy losses maybe it can revisit expenditure such as sponsorship of sport. Everyone is aware of TAC. It is a monopoly 3rd party insurer so it's not as if it has to compete in the marketplace.

    Kennett came so close to flogging it to HIH during his privatisation purges back in the 90s. Imagine what we'd have today had the potential buyer, HIH had bought it?

    It provides a great service to Victorian road users. It needs to be fixed, and pronto.

  4. When I first moved to Vic and walked into a PrickToads office I was stunned and dismayed to find my wallet emptied after transferring my rego's and 3rd party policies. Considering that the bike and the car with combined rego and CTP never cost me more than $550-$600 for both, I thought $850 was excessive !!!! My CTP's were in the vacinity $250-$300 for the car and roughly the same for the bike but like any other insurance factors can altar pricing.

    The Vic TAC set-up is a classic example of an institution that has ignored history's lessons and continued to walk forward to it's own self indulgent demise. NSW had this same set-up some 20yrs ago funded by the then state government 3rd party insurer (GIO maybe ???). Then they privatised it and sure the empty promise of it "being cheaper for all" held true for a cuppla years but naturally as all things do prices started to climb.

    What a lot of the nay-sayers didn't acknowledge was that now that CTP (compulsory third party) was in the hands of those with more staff and more cheat-catching prowess, the cost to the state was not only nil but was also saving the government on dodgy work-cover related claims. No more serious whiplash injuries from collisions with highspeed pedestrians in carparks you see.

    My opinion is we're gunna get so badly anal-ised with our TAC purely because those that need it the most are in such small numbers compared to those that milk the system for every last cent. We may aswell privatise it and pay the increases to those companies that are at the very least gunna make damn sure the money get's spent where it should and anything remotely suss get's sussed out properly. It's totally foreign to me the concept of crashing your own vehicle, it being your fault, your injuries being serious enough to have you off work, and yet the Vic state government pays you money for this to compensate ???? This is not what CTP in NSW is set-up to do.
  5. hopefully they would revise the fee increase of the impact global financial crisis had on the payers.
  6. Didn't HIH go belly up?
  7. Yep, my point exactly. Imagine the mess that CTP would be in had Kennett flogged it off to HIH.

    For starters this isn't NSW. TAC as a concept is good and value-for-money it's on par if not better than the system NSW has.

    Secondly, I'm totally against private companies, especially foreign ones, having monopolies or even market share of services that are compulsory. Sure, we don't have to have CTP but then if we don't we can't drive or ride. So, basically it's an essential service.

    Third, the system in NSW where if you have a single vehicle prang and you're hospitalised you're on your own. Unless you have full private medical cover and some private insurance on top of that then you're going to suffer financially.

    TAC is a no fault system that (normally) works well. It has returned a nett dividend to the government every year since its inception except for recent times. Not a bad effort, especially given that it provides a lot more services than the (foreign owned) private insurers do in NSW and elsewhere.

    There are a few chaps and chappettes here who have had the pleasure of being a TAC client. And no doubt they will have appreciated it. One person who comes to mind is Col Brokenshire (sp?) who had a nasty prang on the Eastern Freeway a few years back. Dunno if he's back riding again but at the time it looked unlikely, and TAC looked after him.

    A mate lost a leg when some twat turned in front of him (his pillion died). He continues to receive support from TAC some 19 years on. Will GIO, Allianz or any of the other insurers do that?

    What TAC needs is sound and effective management, and for the government to keep its grubby mitts out of the till. TAC's ability to provide essential services is far more important than the government needing to balance the budget by raiding its statutory authorities (water as well) each year.
  8. Total beat-up. The only reason for the loss is this government regarding this insurer (and therefore the public) as a milk cow.

    Other way 'round IMHO.
  9. my CTP for the 600 cc cost $238 for 6 months. times 2 = $460 for the year (they reduce it a bit ).

    whats it cost in Victoria?
  10. $523 for my 1100 cc
    which also includes the levy and registration.
  11. That's wierd, i just paid $550 for my 600cc sportsbike. :-s
  12. Maybe if corrupt TAC board-members weren't breaking the rules and giving contracts away to companies they have a financial interest in, instead of using the proper tendering process, they're outgoings would be so high...
  13. Each year all government agencies and authorities jack up their fees, taxes, charges, levies automatically via CPI.

    Maybe you paid yours after said CPI rise, but Smee had paid it prior?

    My Blackbird's rego renewal cost $423.90 (Feb 09), TAC charge was $340, roughly.
  14. Also costs them a pretty penny to be advertising as much as they do.
    They used to have one ad that would run for a looong time. Now they have a new campaign every couple of months.
  15. This might explain the current push for full gear
  16. Was thinking the same thing.
    27% increase in gross claims, which if the overall number of injuries is down (as claimed) or roughly the same, means individual payouts are up. Some of that will be due the to skyrocketing cost of medical technology, but not all.
    No wonder they want to cut the payouts, and I'm not against them doing it through education (not compulsion).

    I think their GFC losses are understandable and probably recoverable. The problem is that Treasury isn't ever happy about unfunded liability, however temporary. Don't understand the underwriting losses though, Can anyone explain?
  17. A metric f**kload. I'll tell you the exact figure when I get back from Vicroads tomorrow, as long as I don't have to stop to sell my kidneys on the way.

    Seems the government is keeping TAC profits down. Is the TAC a company like any other business or is it a government body?
  18. MV, TAC is a government instrumentality. Just like Vicroads, for example.