Auditor-General's Department South Australia Logo

Motor Accident Commission

Functional responsibility

The Motor Accident Commission (the Commission) is established pursuant to the Motor Accident Commission Act 1992 (the MAC Act). The main function of the Commission is to provide compulsory third party (CTP) insurance to motor vehicle users in South Australia.

The principal objectives of the Commission in providing CTP insurance are to:

  • achieve and maintain a sufficient level of solvency in the Compulsory Third Party Fund (the CTP Fund)
  • minimise premium charges having regard to the Commission’s objective of achieving and maintaining a sufficient level of solvency in the CTP Fund
  • deal with claims for compensation in accordance with law as expeditiously as possible.

The Commission’s charter, pursuant to section 18 of the MAC Act, empowers the Commission to undertake CTP insurance and financial risk insurance.


Financial statistics
Outstanding claims liability: $1878 million
Total investments: $2822 million
   
Net result: $425 million
   
Number of FTEs: 38.7

CTP Fund assets represented 121% of the target solvency level.


Significant events and transactions
  • Return of capital of $852.9 million by a payment to the Highways Fund.
  • Reduction in outstanding claims liability of $205 million.
  • Third party premiums were approved to reduce 9.3%.

Financial statement opinion
Unmodified

Financial controls opinion
Modified
Key issue:
  • Controls for the Shared Services SA main payroll system did not meet a generally satisfactory standard