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Insurance plan to cost drivers $109 a year

Insurance plan to cost drivers $109 a year

WA motorists will pay an extra $109 a year in motor vehicle fees if the State Government introduces "no-fault" compulsory third-party insurance.

Treasurer Mike Nahan yesterday released a Green Paper canvassing whether WA should fall into line with NSW, Victoria, South Australia and Tasmania, where car accident victims are comprehensively covered for catastrophic injury even if they are partially or solely at fault.

But under WA's 1947 fault-based system, a person injured in a car crash has to prove negligence by another driver or owner of the vehicle to claim against their compulsory third party insurance policy.

About 92 West Australians suffer catastrophic injuries every year as a result of a car accident.

Catastrophic injuries are defined as spinal cord and traumatic brain injuries, multiple amputations, severe burns and permanent blindness.

Currently, a little more than half of those catastrophically injured in WA each year are able to claim lump sum compensation.

The remaining victims receive nothing because negligence against another driver was unable to be determined. These people are forced to rely on government-funded health and disability services, personal insurance, family and friends.

Dr Nahan said the Green Paper would be available for public comment via the Insurance Commission of WA website until Christmas Eve.

The scheme, if introduced, will not be retrospective.

The Treasurer was unsure if people would accept the "large increase" in fees given the scheme affected few people.

He said WA motorists had long enjoyed the most affordable CTP premiums in the country. "The move to no-fault will help about 45 people a year, on average, and it will lead to an increase in the CTP cost of $109 per year, pushing the cost from $291 to $400," Dr Nahan said.

Disability Services Minister Helen Morton said a serious motor vehicle accident could "happen to anyone, anywhere at any stage in their life" with no guarantee of another driver being at fault. Mrs Morton said she had been told stories of people remortgaging their homes to pay for the care of family members not eligible for compensation under the current system.

National Disability Services WA manager Julie Waylen welcomed the announcement, saying the group had campaigned for years to end the "injustice" of a fault-based scheme.

"In the current system those who are deemed 'at fault', or where no one is to blame such as where a kangaroo hits a car, will receive no compensation," she said.

"Victims and their families face horrendous costs in ongoing rehab, equipment, house modifications and care and personal support."

The Green Paper can be viewed at www.icwa.wa.gov.au