The Compulsory Third Party (CTP) motor vehicles insurance industry is declared by the Minister for Treasury to be a regulated industry for the purposes of ICCC Act pursuant to section 26 of the Motor Vehicles (Third Party Insurance) Act (Chapter No. 295) (hereafter the ‘Motor Vehicles Act’).
In 2002, the Minister for Treasury declared under section 32 of the ICCC Act that:
- The provision of CTP motor vehicles insurance coverage to be a regulated service under section 32(1) of the ICCC Act; and
- Motor Vehicles Insurance Limited (here after “MVIL”) to be a regulated entity under section 32(2) of the ICCC Act.
MVIL is licensed under section 18 of the Insurance Act 1995 to provide CTP motor vehicles insurance coverage in Papua New Guinea.
Under section 35 of the ICCC Act, the Commission is required to issue a CTP Motor Vehicles Regulatory Contract (“Regulatory Contract”) that binds on MVIL and the Commission for a five year regulatory period.
This Regulatory Contract regulates the premiums that MVIL shall charge for the provision of CTP motor vehicles insurance coverage and the charges that MVIL shall make for endorsements in respect of policies for that insurance. The Commission undertook a review into the previous Regulatory Contract and has issued a new Regulatory Contract at the end of 2017. The new Regulatory Contract took effect on 1st January 2018 and will end on 31st December 2022.