Compensation claim rises blamed on credit crunch
THE global financial crisis has been blamed for the rise in compensation claims made by drivers in a region of Australia.
Now car owners in the Northern Territories are to be hit with an increase in registration prices as a consequence of more compensation claims.
Motor Accidents Compensation Commissioner Ram Vemuri said: “People will be upset with losing their job and they could have an accident. When you are under a lot of stress, you can take it out on the road. And people often drink to drown their sorrows.”
The Motor Accidents Compensation Scheme is run by the government-owned Territory Insurance Office and pays compensation claims for death or injury from no-fault accidents.
Treasurer Delia Lawrie has announced a 5% rise in premiums on motor accident compensation claims.