FUNDING channels to the Motor Accidents Insurance Board will remain unchanged, with the company's premium-per-vehicle policy here to stay. Heads of the lucrative government-owned insurance company fronted a parliamentary committee yesterday, responding to questions about whether the system could be shifted so that individual drivers paid instead. MAIB chief executive Peter Roche said while the company's premium model was not perfect, it was not broken either, and would not be changed. "In Australia, all jurisdictions operate in the same manner, which is a premium on each vehicle," he said. The hearing also heard a $100 million special dividend the Motor Accident Insurance Board will soon pay the state government was an idea of the company's board, not based on a request. It was believed the whopping one-off payment had been asked for by the government, but MAIB chairman Don Challen was quick to set the record straight. "The board took the initiative of writing to the Minister and the Treasurer and saying that mostly as a result of our very strong performance in the last two years, we are holding capital far beyond our needs," he said. "We suggested to them the government could call on a special dividend from us of up to $100 million dollars. "The timing of that hasn't really been determined, that's a matter for the Treasurer, but we've organised our affairs so we're in a position to pay it pretty much whenever the Treasurer wants it," he said. The company returned an after tax profit of $125.5 million in the last financial year, and paid out a $23.2 million dividend. It expects to pay a dividend of $44.6 million at the end of this year. A cut in premiums paid by Tasmanian drivers put a reasonable dent in the MAIB's profits in 2013-14, but it remains among the most financially successful government-owned businesses.
MAIB chairman Don Challen, Infrastructure Minister Rene Hidding and MAIB chief executive Peter Roche at yesterday's government business scrutiny hearings.
FUNDING channels to the Motor Accidents Insurance Board will remain unchanged, with the company's premium-per-vehicle policy here to stay.
Heads of the lucrative government-owned insurance company fronted a parliamentary committee yesterday, responding to questions about whether the system could be shifted so that individual drivers paid instead.
MAIB chief executive Peter Roche said while the company's premium model was not perfect, it was not broken either, and would not be changed.
"In Australia, all jurisdictions operate in the same manner, which is a premium on each vehicle," he said.
The hearing also heard a $100 million special dividend the Motor Accident Insurance Board will soon pay the state government was an idea of the company's board, not based on a request.
It was believed the whopping one-off payment had been asked for by the government, but MAIB chairman Don Challen was quick to set the record straight.
"The board took the initiative of writing to the Minister and the Treasurer and saying that mostly as a result of our very strong performance in the last two years, we are holding capital far beyond our needs," he said.
"We suggested to them the government could call on a special dividend from us of up to $100 million dollars.
"The timing of that hasn't really been determined, that's a matter for the Treasurer, but we've organised our affairs so we're in a position to pay it pretty much whenever the Treasurer wants it," he said.
The company returned an after tax profit of $125.5 million in the last financial year, and paid out a $23.2 million dividend.
It expects to pay a dividend of $44.6 million at the end of this year.
A cut in premiums paid by Tasmanian drivers put a reasonable dent in the MAIB's profits in 2013-14, but it remains among the most financially successful government-owned businesses.
