The Minister, the Honorable Mr Bryan Green announced today that the Tasmania's compulsory third party no-fault motor accident insurance premiums will remain at their current level until 30 November 2006.

The Minister for Infrastructure, Energy and Resources, Bryan Green, says the decision not to adjust premiums means Tasmanians will continue to enjoy the lowest no-fault premiums in Australia.

"The MAIB Board considered actuarial advice which noted the continued improvement in claim frequency."

"The growing State economy has brought about a sustained increase in vehicle registration, but there's been no matching increase in claims."

"Under the pricing mechanism approved following the 2003 review conducted by the Government Prices Oversight Commission (GPOC), the maximum premium increase allowable from 1 December this year was 4.61%, equivalent to the rise in average weekly ordinary time earnings."

"That could have meant a rise of $15."

"I'm sure the decision to peg premiums will be appreciated by motorists as they cope with record high fuel prices," Mr Green said.

GPOC will review premiums again next year.

"The Tasmanian scheme continues to deliver superior and fairer benefits, particularly when compared to those available interstate."

"But we must not lose sight of the importance of safety on our roads."

"Fewer crashes means less injuries and claims costs which are ultimately reflected in premiums."

Mr Green said the fact that the MAIB was able to take the decision not to move premiums reflected its sound business management.