South Australian Consolidated Acts

MOTOR VEHICLES ACT 1959 - SECT 129

129—Inquiries into premiums

        (1)         Upon the recommendation of the Minister, the Governor may appoint a committee to inquire into and determine from time to time what premiums in respect of insurance under this Part are fair and reasonable.

        (2)         The persons appointed to such a committee will be—

            (a)         a legal practitioner who has been admitted for at least ten years, who will be the presiding officer;

            (b)         a person nominated by the Minister;

            (c)         three persons appointed to represent the interests of owners of motor vehicles;

            (d)         three persons with expertise in the insurance industry field, of whom at least one is to represent the interests of approved insurers.

        (2a)         At least one member of the committee must be a woman and at least one must be a man.

        (3)         The members referred to in subsection (2)(c) and (d) will be appointed after consultation between the Minister and bodies which, in the opinion of the Minister, represent the interests of approved insurers and owners of motor vehicles respectively.

        (4)         The members of the committee hold office during the Governor's pleasure and the Governor will make appointments to fill vacancies occurring on the committee.

        (5)         The committee has all the powers of a royal commission, and the Royal Commissions Act 1917 with the necessary modifications applies to the presiding officer and other members of the committee and its secretary and its proceedings and to witnesses and persons summoned as witnesses before the committee.

        (5a)         In determining premium amounts, the committee—

            (a)         may not fix differential premiums except on the basis of one or more of the following:

                  (i)         vehicle type;

                  (ii)         vehicle use;

                  (iii)         garaging location;

                  (iv)         entitlement under the GST law to an input tax credit in respect of compulsory third party insurance premiums; and

            (b)         must, while the Motor Accident Commission is the sole approved insurer under this Part, have regard to the Commission's obligation to seek to achieve and maintain a sufficient level of solvency (within the meaning of section 13A of the Motor Accident Commission Act 1992 ) in its Compulsory Third Party Fund.

        (6)         The Minister must lay every determination and a statement of reasons for the determination of the committee before Parliament.

        (7)         The committee may not incur expenses in respect of consultancy services or expert advice provided by a person other than as a witness before the committee except with the prior approval of the Minister and Treasurer (which approval must not be unreasonably withheld).

        (8)         The administrative costs and expenses reasonably incurred by the committee in carrying out its functions are recoverable—

            (a)         while the Motor Accident Commission is the sole approved insurer under this Part—from the Third Party Insurance Fund, subject to and in accordance with the Motor Accident Commission Act 1992 ;

            (b)         in any other case—in fair proportions from all approved insurers, subject to and in accordance with the directions of the Minister and the Treasurer.