Tasmania's MAIB premiums for compulsory no-fault motor accident insurance will continue to be lower than those in most states following the next annual adjustment to apply from 1 December 2003.
 

In line with recommendations from the Government Prices Oversight Commission (GPOC), the premium for motor cars will rise by 5.5 percent or $17, with 2.2 percent of the increase a result of the end of GST transitional arrangements. Pensioners would continue to receive a 20 per cent discount keeping the premium rise to $14.
 

MAIB Chief Executive Peter Roche said despite the GST impact, the motor car increase was in line with the latest increase in average weekly earnings.
 

Mr Roche said the GPOC recommendations followed a comprehensive and transparent review of MAIB premiums including the publication of an issues paper and draft report for public comment.
 

Following this independent review and consultation process, the State Government accepted the GPOC recommendations.
 

The new premium for a motor car of $324, maintains Tasmania's position as having the lowest no-fault premiums in the country.Western Australia has lower premiums but has a common law only scheme.
 

"Tasmanians continue to benefit from a superior range of benefits, particularly when you look at our scheme alongside those of other states where benefits are recovered only where another driver is at fault," Mr Roche said.
 

Premium increases are required to keep pace with increases in claim payments that naturally occur because of wage increases.
 

The premium for motor cycles will rise by $51, reflecting the higher claims experience. However, to assist motor cycle safety and reduce the incidence and severity of accidents, MAIB has given in principle agreement to support the implementation of the new motor cycle safety strategy. The appropriate framework for this initiative is yet to be finalised pending the outcome of the Road Safety Council's review of motor cycle safety.
 

Hire car premiums will also rise, based on higher claims, however proprietors will now be able to claim back the GST component significantly reducing the net increase to $107.The net increase for taxi owners will be $117 while the net increase for large buses will be $9.

Comparative motor car premiums inclusive of GST are:
 

Mr Roche said despite these increases, compulsory no-fault motor accident insurance in Tasmania would remain among the lowest in Australia after 1 December.
 

"In addition, our payments and services are among the fairest available," Mr Roche said.
 

"Importantly, the MAIB is also providing $2.25 million a year to the Road Safety Task Force to fund education, promotion and enforcement programs aimed at reducing death and serious injury on our roads."