TAC response to Geelong Advertiser article "Crisis in Geelong: TAC's $1 billion annual loss"

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20 Sep 2012

Letter to the Editor
Geelong Advertiser

In the last fortnight many people in the community have approached me wishing to discuss the story "Crisis in Geelong: TAC's $1 billion annual loss".

The question I'm being asked is "Will this result have a negative impact on injured Victorians?"

I can reassure residents and businesses of Geelong that it will not.

It's true that in 2011/12 the overall TAC scheme did record a loss of $1.024 billion.

The loss is largely driven by difficult external markets, and as we know organisations across the board have felt an impact from global markets.

However, the key measure of the underlying health and strength of the scheme, is the Performance from Insurance Operations. This figure separates out external factors and is the indicator of the TAC's ability to keep helping our clients and improving road safety.

It is pleasing that in 2011/12, the Performance from Insurance Operations recorded a profit of $351 million compared to $187 million last financial year.

This is a strong result that reflects our focus on efficiencies, accident prevention and strong claims management.

A financially sound TAC is the basis on which the Victorian community can rely on receiving support and assistance if they are in a transport accident.

These are the measures we have control over and we are pleased they are performing strongly.

The TAC will confidently continue looking after injured Victorians now and into the future.

Janet Dore
Chief Executive Officer
Transport Accident Commission.

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