In case you did not know, your greenslip includes other costs along with the insurers’ premium. This is the GST and the MCIS Levy. They both are applied to the insurers’ premium.
The MCIS Levy represents the entire medical and ambulance cost from public hospitals and any lifetime care which may be needed by persons severely injured in motor vehicle accidents.
However, this Levy is not charged any GST. There’s two parts to this levy namely Lifetime Care and Support element and the MAA element.
Furthermore, any hospital or ambulance cost along with the MAA costs is included in the MAA component. The MAA also comprises of advertising costs, audits, grants and costs arising from dispute resolutions. This cost is charged at a current rate of 10% of the premium charged by insurers.
The LTCSA is there to look after people who are severely injured in motor vehicle accidents and require life time care and support. This is not based on who’s at fault for the accident. Because this levy is applied according to the level of risks, rates are different for different types of motor vehicles. The LTCSA Board is responsible for setting the MCIS Levy rates.