"I am very keen to get some indication of what various states and countries
do about motor accident personal injury insurance. You input will be
greatly
valued, even if you only have an answer to one of the queries below
In this country (South Africa), we have a Road Accident Fund that provides
the cover for "third parties" injured or killed in road accidents. [The
first two parties, the drivers of the vehicles involved are not covered]
The
fund is financed by a levy on fuel sales, and as it has government backing
it is partially funded. The claim process is fairly lengthy with claims
taking up to 12 years to be financed. Lawyers are involved because it is
not
a "no fault" system, and actuaries assist the court in assessing loss of
future earnings and future loss of support for spouses and children in the
case of deaths.
A government commission is currently investigating the fund with a view to
making recommendations for its future. The questions I would be most
interested in having answered include the following, but additional detail,
or potential sources of such information would be most welcome.
1. In SA because of the fuel levy, 100% coverage of the population is
achieved.
What coverage is achieved in your country?
2. What other countries have such a "centralised" system, and where is
this
cover provided by private sector insurance companies?
3. If cover depends on premiums being paid, how is widespread insurance
cover
achieved? If vehicles / people involved in an accident are not insured,
what
are the consequences?
4. For both central and private plans, what is the cost ratio for this
type of
business? The RAF spends about 25% of claims (Little lower % of income) on
settlement [lawyers, medicals, actuaries, court time, etc.] and 10% on
administration. I'm keen to know if other systems are more effective.
5. Is the system "fault" or "no fault"? If a change was made in the past,
what
were the reasons or motivations, and has the change achieved the reasons
for
the change?
6. Has anyone got statistics that demonstrate the change in claims and
cost
experience when a change is made from fault to no fault or the other way
round?
I would be most delighted to hear from any of you.
Regards
Reg Munro"
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