Motor Vehicle (Third Party Insurance) Regulations Amendment (ACT)

Motor Vehicle (Third Party Insurance) Regulations Amendment

Subordinate Law 1999 No 32

The Australian Capital Territory Executive makes the following regulations under the Motor Traffic Act 1936.

Dated 26 November 1999.

brendan smyth

Minister

gary humphries

Minister

1. Commencement

   These regulations commence on the day they are notified in the Gazette.

2. Regulations amended

   These regulations amend the Motor Vehicle (Third Party Insurance) Regulations 1947.

3. Insertion

   After regulation 19 the following regulation is inserted:

4. A New Tax System (ANTS)—adjustment for certain premiums

5. In working out the maximum premium that may be charged for a third-party policy issued on or after 1 December 1999 and before 1 July 2000, the maximum premium that may be charged, apart from this regulation, is increased in accordance with the following formula:

Current premium x (1 + [P2/P1 x A] + [P3/P1 x B]) x (1 + [P3/P1 x C])

1. In subregulation (1)—

   Ais     3.73%.

   B is     -4.29%.

   C is     10%.

   P1 is   the total number of days covered by the policy.

   P2 is—

   (a)    if the policy is expressed to end before 1 July 2000—the total number of days covered by the policy; or

   (b)    if the policy is expressed to end on or after 1 July 2000—the total number of days before 1 July 2000 covered by the policy.

   P3 is—

   (a)    if the policy is expressed to end before 1 July 2000—zero; or

   (b)    if the policy is expressed to end on or after 1 July 2000—the total number of days on or after 1 July 2000 covered by the policy.

Example

A third-party policy is expressed to begin on 1 December 1999 and end on 30 November 2000.

P1 = 366

P2 = 213

P3 = 153

Current premium = $354.00

GST increased premium =$354.00 x (1 + [213/366 x 3.73%] + [153/366 x –4.29%]) x (1 + [153/366 x 10%])

=$370.19

Note 1    A is that part of the ANTS premium impact from claims arising before 1 July 2000.  It is positive because input credits are not available for such claims.

Note 2    B is that part of the ANTS premium impact from claims arising on or after 1 July 2000.  It is negative because of input credits available for such claims.

Note 3    C is the 10% GST that applies to the post-30 June 2000 component of the total premium.

Note 4    P1 = P2 + P3.”.

Endnotes

Regulations amended

1. Republished as in force on 31 March 1997 (Republication No 5). See also SL 1997 No 18; 1998 No 22; 1999 Nos 2 and 6.

Notification

1. Notified in the Gazette on 29 November 1999.

©  Australian Capital Territory 1999