17/12/2002 12:27 PM
MOTOR ACCIDENTS AUTHORITY
REPORT TO THE LAW AND JUSTICE COMMITTEE
Scheme performance indicators
In evidence to the Legislative Council’s Standing Committee on Law and Justice in
May 2000, the MAA identified four scheme performance indicators. Each of the
performance indicators is addressed in this section based on the operation of the
Motor Accidents Compensation Act 1999 since it started on 5 October 1999, to the
end of September 2002. The four scheme performance indicators are affordability,
effectiveness, fairness and efficiency.
The affordability of Green Slips prices has improved according to three measures:
• Average premiums
• Ratio of premiums to average weekly earnings
• Price paid by the majority of Sydney metropolitan passenger vehicle owners.
The average premium for a Sydney metropolitan passenger vehicle dropped from
$441 in June 1999 to $341 in December 2000 increasing to $347 (excluding GST) in
September 2002. It is anticipated that the average will drop to $345 in December
The average annual premium over all vehicle classes in NSW has dropped from
$419 in June 1999 to $336 in September 2002.
Premiums and Average Weekly Earnings
The price of a Green Slip premium has dropped while average weekly earnings have
increased. As a proportion of average weekly earnings, weighted best price has
dropped from 50% before the reforms to 34% in September 2002.
Premiums reduce for most vehicle owners
At September 2002, more than 70% of owners of metropolitan passenger vehicles
paid $318 or less (excluding GST) for a Green Slip.
For the first year after the commencement of the legislation, the MAA had the power
to reject a premium if the MAA ‘was not satisfied … that the majority of policies
relating to passenger motor vehicles in metropolitan areas will attract a premium of
not more than approximately $330’. In the first year of the scheme, more than 70%
of premiums for metro