No-choice Insurance A 'free Ride'
Sydney Morning Herald
Thursday November 22, 1990
SIR: Every time when I renew the registration on my car and motorcycle, I feel outraged at the impudence of the NSW Government's action in allocating my third party insurance to one insurance company, without my having a choice in selecting that company.
Before the introduction by the NSW Government of that scheme, which I call"socialism for private gain", we were free to choose our own insurance company and only if we did not choose one was our business then allocated to the GIO.
I know, next year we will be free to choose our insurer again, as it was under the previous government's scheme, but for two years the insurance companies chosen by the Liberal, free enterprise Government, with the assistance of costly consultants, had a free ride without competition. It greatly increased their profits - as can be seen by reading the financial pages - and was compulsorily paid for by NSW motorists and collected by public servants.
The fact that registration and third party insurance charges in NSW are by far the highest in Australia speaks for itself.
Furthermore, my business has been allocated to Zurich Australian Insurance Ltd, with which I would never have dealt voluntarily as our overseas trade balance is bad enough without being added-to by insurance company profits going to Switzerland.
Gerhard Meixner,
Meehan Street,
Yass (ACT).
November 16
© 1990 Sydney Morning Herald
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