I think I get what you're saying, but it's not any 'club' which provides the CTP.
CTP is the acronym for COMPULSORY THIRD PARTY insurance & like anything 'compulsory' has been rorted to the n-th degree. It is a closed club very neatly sewn up between the insurance, legal & medical professions & as such spirals (upwards) in cost, year in, year out. Only a few insurance companies are 'allowed' to provide CTP.
I doubt that the premium paid in any way represents the actual cost of claims. Do the maths. In previous decades Australia (NSW in particular) had the highest road death & injury rates in the world bar none. Nowadays, the cars are immeasurably safer & the are roads seriously better, resulting in a major decline in the rate of death & injury. The death rate alone, has gone down from around 4,000 per year in 1970 to around 1,200 today, while the number of drivers & cars on the road had doubled or tripled in that same time. Why then are we paying CTP rates that a 5 to 8 times higher than only a decade or 2 ago ? The actual payouts are also capped so somebody can't get a $500,000 gift for 2 broken fingers.
Dr Terry
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