MOTOR registration fees would be cut and every driver covered for injury in a plan to overhaul the state's road crash compensation scheme.

Three of the state's most respected community leaders are demanding an overhaul of the "unfair" car accident compensation scheme to one that covers all drivers and reduces registration fees.



Royal Adelaide Hospital trauma services director Dr Bill Griggs, Hampstead Rehabilitation Centre director Dr Ruth Marshall and Police Commissioner Gary Burns want major changes to the Compulsory Third Party (CTP) scheme, which costs motorists more than $500 a year per vehicle.

They want a scheme which would deliver cheaper premiums and universal medical cover, but to also curb drivers' rights to sue for "pain and suffering" over minor injuries.

If successful, it would be one of the biggest shake-ups to South Australia's insurance system in decades.

SA has 907,000 CTP policy holders (many people have multiple vehicles) who pay among the nation's highest premiums, at $512 for each registered vehicle.

These premiums are rising at double the inflation rate.

"We need a system that is fair to everyone it's the Australian way," Dr Griggs said.

Dr Marshall said: "It is hard to explain to a family that the person in the next room with similar injuries is covered but their son or daughter is not."

Under the existing scheme, if no other driver is at fault such as if someone hits a Stobie pole after a tyre blowout an injured driver cannot claim compensation and is left at the mercy of the public health system.

Each year about a dozen people left with lifelong catastrophic injuries such as quadriplegia and brain damage miss out on compensation because there is no "at fault" driver to sue and no claim can be made.

But critics say the scheme has become a lawyers' picnic with many people going to court seeking extra money for "pain and suffering" payments such as mental anguish on top of their medical costs.

This has forced up premiums and led to higher registration fees.

Treasurer Jack Snelling is expected to take proposals to Cabinet later this month for an overhaul of the scheme following a Green Paper earlier this year canvassing public opinion on several options.

One option backed by Dr Griggs, Dr Marshall and Mr Burns is for a "no fault" scheme where:

ALL drivers are covered for catastrophic injuries regardless of fault.

PAYING compensation periodically rather than a lump sum.

AN overhaul of payouts to end "pain and suffering" payments for people with minor injuries, and not requiring the CTP scheme to pay legal bills on awards of less than $30,000.

While this option would cover more people with major injuries, limiting payments for minor injuries where the vast majority of claims are made and cuts to legal fees would see premiums fall.

Dr Griggs called for all drivers to be covered.

"People may say irresponsible drivers deserve what they get, but to be left with spinal injuries and not receive help with lifetime care is completely disproportionate, and as a society we should be better than that," he said.

Proposed reforms to replace lump sums with periodic payments were welcomed by Dr Marshall.

"People with spinal injuries are living a lot longer than once expected and we are getting new technology, but lump sums can run out and some simply disappear quite quickly because people do not handle them well," she said.

Mr Burns said reducing the road toll was a police priority.

With Cabinet due to consider the issue, Mr Snelling said he wanted a fairer system that also reduced car registration costs.

"I think it is a completely unacceptable situation where people injured through no fault of their own are left without compensation to help them cope with their injuries," he said.

Australian Lawyers Association SA president Patrick Boylen and Law Society president-elect John White rejected excluding people from suing for "pain and suffering", saying governments should not take away legal rights.

Originally published as Time for a fair go on car compensation