A NEW insurance policy that covers leadfoot drivers against the loss of their licences has been branded as nothing more than a money-making scheme by Acting Police Minister Robert Schwarten.
The loss-of-licence assistance offered by Ezy Insure covers drivers for up to $1000 a month for three months when their licence is suspended for multiple minor speeding offences.
Michael Lane, of the National Motorists Association, said the policy was not intended to encourage speeding but to help with transport arrangements after a licence suspension.
“This insurance is becoming an unfortunate necessity as a result of the authorities’ predilection for inappropriately low speed limits and unthinking automatic enforcement,” Mr Lane said.
But Mr Schwarten said there was no justification for this type of insurance policy.
“The best insurance is for people not to lose their licence in the first place,” he said.
“The fact is, if you do the wrong thing on the roads you can lose a lot more than your licence.”
Noel Johns from National Underwriting Agencies said the policy was already popular overseas and he expected a similar response in Australia.