CTP insurance in the Northern Territory: the MAC Scheme

Why the NT has no CTP market

The Territory used to run a fault-based CTP scheme with private insurers. According to the MACC, by the late 1970s high accident rates and common law payouts had left insurers with heavy losses, legal costs made up around 30% of claims costs, and injured people who could not prove someone else's negligence got nothing. The MAC Scheme was set up in 1979 to replace it.

The result is a government-owned, no-fault scheme. You still pay for it through registration, but there is no policy to buy and no premium to compare.

Who runs the MAC Scheme

The Motor Accidents Compensation Commission, established on 1 January 2015, administers the scheme under the Motor Accidents (Compensation) Act 1979 on behalf of the NT Government. It manages the fund benefits are paid from and promotes road safety. The MAC Commissioner is appointed by the NT Treasurer.

Day-to-day claims are handled by TIO, which the MACC appoints as claims manager and oversees. That is why many Territorians think of TIO as their CTP insurer. The scheme's liabilities are reviewed by its actuary twice a year, and a legislated actuarial review every three years checks whether contributions, and the relative rates charged to different vehicle classes, remain appropriate.

Who is covered

The MAC Scheme covers all road users: drivers, passengers, pedestrians, motorbike riders and cyclists. You can claim if you were injured in a motor vehicle accident in the Northern Territory, or if you are the next of kin of someone who died in one. Territory residents are also covered interstate when a Northern Territory-registered vehicle is involved, whoever was at fault.

Who is not covered

The MACC lists situations where you may not be entitled to benefits:

• the driver, rider or owner of an unregistered vehicle (passengers and others involved may still be covered)
• drivers, riders and owners of vehicles that are not registered for road use, such as dune buggies, motocross bikes, quad bikes, golf carts, go-karts and privately owned e-scooters
• people involved in motor sports, high-speed tests or trials
• people injured in the course of their employment, who may be covered by workers compensation instead
• people involved in criminal activity, or intending to cause death or injury to themselves or others.

What the MAC Scheme pays

The scheme is built on periodic benefits: it pays for necessary and reasonable medical and rehabilitation treatment, provides loss of earnings support and other benefits while you recover, and keeps paying for as long as needed. For people with permanent, catastrophic injuries it can fund lifetime attendant care.

Lump sums are limited to two situations: death benefits for surviving dependants, and a permanent impairment payment for people assessed with an impairment of at least 5%. Benefits can be reduced or excluded in some circumstances, which the MACC details for accidents at motor sports events, alcohol and drugs, driving on an expired, cancelled or suspended licence, and not wearing a safety helmet.

Hire e-scooters and e-bikes

People injured using a hire e-scooter or e-bike in the Territory should claim on the hire company's insurance first. Once that entitlement is exhausted, they may be able to claim on the MAC Scheme.

Crashes outside the Territory

A Territory resident injured or killed in an interstate crash involving an NT-registered vehicle can claim on the MAC Scheme with a copy of the police accident report. A resident who was not at fault can instead choose to claim under the CTP scheme of the state where the crash happened. Residents of other states may claim against the MAC Scheme where an NT-registered vehicle was at fault in a crash outside the Territory, under the rules of the place where it happened. See the CTP comparison across Australia.

How to make a MAC claim

Claim as soon as possible. Adults should claim within 6 months of the accident; a claim made after 6 months but within 3 years may still be considered, and one made more than 3 years after the accident will not. Someone injured as a minor must claim within 3 years of their 18th birthday.

Download the injury claim form, or get one from your treating hospital in the Territory, and send it to TIO MAC by email or post with copies of medical certificates, evidence of employment if you are claiming loss of earning capacity, details of any other insurance you hold (such as travel, income protection or TPD cover) and, if you were the driver, the police accident report number. You will be assigned a case manager. Our claims guide compares the NT's deadlines with other states.

CTP in other states and territories

Every state runs CTP differently. If you are moving or registering a car interstate, check the scheme you are moving into, or see the CTP comparison across all eight.