ICCC Releases Draft Report

The Independent Consumer and Competition Commission (ICCC) have released Draft Report and CTP MVIL Regulatory Contract for Motor Vehicles Insurance Limited (MVIL).

ICCC informs that the existing five-year Regulatory Contract binding between ICCC and MVIL is due to expire on December 31, 2022, hence this review is undertaken to determine and set a new Regulatory Contract for the next five years (2023-2027).

Following the release of the Issues Paper into the CTP MVIL Regulatory Contract Review on February 28 2022, there were some contentious issues that needed to be re-looked and verified. The ICCC after carefully considering comments received from relevant stakeholders including its own independent assessment has now formulated a Draft Report and Draft Regulatory Contract.

ICCC states that the Draft Report and Draft Regulatory Contract are now being released for all stakeholders to review and provide their comments and views. There will be a month’s public consultation period allowed for all stakeholders.

ICCC states the key determinations as follows:

  • Maintaining the current pricing arrangement
  • Maintaining the existing five-year regulatory period
  • Maintaining the mid-term provision but include the review of vehicle classifications
  • Maintaining the same Service Standard Requirements
  • Retaining the Data Management System as the Key Performance Indicator, with strict development and implementation schedule Maintain the current vehicle classification, and
  • Maintain the current risk relativity for each vehicle class.

ICCC states that the comments received on the Draft Report and Draft Contract will assist ICCC to formulate and draft new CTP MVIL Regulatory Contract and Final Report for the next five-year regulatory period (2023-2027).

According to ICCC, all submissions or comments should be forwarded to the ICCC no later than August 31 2022. ICCC advises that late submissions will not be considered.

Copies of the draft report and contract can be obtained from the ICCC’s website, www.iccc.gov.pg, or collected from  the ICCC’s head office at the 2nd Floor Post Office Building at Boroko.

Marysila Kellerton