TAC on solid footing

29 Oct 2003

Media Release - 29 October 2003

The Transport Accident Commission has recorded an after tax profit of $51 million for the financial year ended 30 June 2003, TAC Chairman Mr James MacKenzie announced today.

'At the same time we have seen a write down in projected liabilities of $311 million, demonstrating that improving client outcomes and strong financial management are the key drivers of sustainable success in a volatile world economy,' Mr MacKenzie said.

And by continuing to utilise a claims management approach built around the segmentation of claims based on injury type and severity, we believe that we can improve even further.

Mr MacKenzie said key results for 2002/03 included:

• $536.2 million in support services funded for 42,782 clients.
• Client satisfaction maintained at an historical high of 6.95 out of 10.
• Lifetime Support initiative positively impacting on clients' lives.
• Victoria's lowest financial-year road toll on record of 368.
• Hospitalised claims down 6%.
• Launch of the TAC's world-first Drive Right program.
• After-tax profit of $51 million.
• Funding ratio of 111%.
• Actuarial release of $311 million.
• No increase in premiums beyond CPI.

'Most importantly, the TAC's strong performance in service delivery, road safety and financial management during 2002/03 has placed the organisation on a solid footing for the future,' Mr MacKenzie said.

Mr MacKenzie said the welcome reduction in trauma on our roads was the result of a co-ordinated approach by the key road safety partners under the Victorian Government's arrive alive! strategy.

'There can be no doubt that Victoria's lowest ever financial year road toll - and the significant drop in serious injuries - has only been achieved through the strong co-operation and unity of purpose between the State's peak road safety organisations, including the Victoria Police, VicRoads, and the TAC,' he said.

'The TAC - together with its road safety partners - remains committed to striving for the Victorian Government's stated objective of a 20% reduction in death and serious injury on our roads by 2007.

'The past year has shown us that the vast majority of Victorian motorists share this commitment.'