Annual Report 2019-20 1 TAC Annual Report Contents It's been nearly three years since my accident and I feel like my life is largely back to normal now. I am forever grateful to the TAC for their support in making that happen and in a way, feel really fortunate. I've been impressed by how the TAC has quickly been able to adapt during this COVID lockdown and continue supporting clients to get the services they need. TAC client WILL 2 Letter from the Chair to the Ministers 3 Board and Executive Management 4 Highlights 5 Chair and CEO’s report 7 About the TAC 9 Responding to crises 11 Road Safety 13 Prevention 17 Public Education Campaigns 19 Cars of the Future 25 Partnerships 27 Community and Stakeholder 29 Supporting Injured Victorians 29 Common Law and Impairment 39 Research and Innovation 41 Resolving Disputes and Complaints 45 Reducing Fraud 46 Our People 47 Managing the Scheme 55 Financial Report 57 Corporate Governance 108 Compliance 112 Disclosure Index 125 The TAC acknowledges the Traditional Owners of Victoria’s land and pays its respect to Elders past, present and emerging. 3 TAC Annual Report to the Ministers to the Chair Letter from the Thursday October 29, 2020 The Honourable Ben Carroll MP The Honourable Danny Pearson MP Minister for Roads and Road Safety Assistant Treasurer Level 20, 1 Spring Street Level 5, Macarthur Street MELBOURNE VIC 3000 EAST MELBOURNE VIC 3002 Dear Ministers I am pleased to submit the 34th Annual Report of the Transport Accident Commission for presentation to Parliament pursuant to Part 7 of the Financial Management Act 1994. Greg Wilson CHAIR 4 Board and Executive Management MINISTER FOR ROADS ASSISTANT AND ROAD SAFETY TREASURER Ben Carroll MP Danny Pearson MP CHAIR EXECUTIVE LEADERSHIP TEAM Greg Wilson Joe Cala�ore Appointed March 2019 Chief Executive O�cer BOARD OF MANAGEMENT Jane Barker People and Culture Jane Brockington Liz Cairns Appointed October 2017 Independence James Flintoft Samantha Cock�eld Appointed July 2019 Road Safety David Heath Bruce Crossett Appointed February 2017 Chief Strategy O�cer Re-appointed February 2020 Tony Dudley Louisa Hudson Chief Financial O�cer Appointed August 2016 Business Enablement Re-appointed August 2019 Andrew Holt Julia Mason Chief Risk O�cer Appointed August 2016 Re-appointed August 2019 Brad Kemp Information Technology Sharon McCrohan Shared Solution (Acting) Appointed December 2019 Jason Lardelli John Merritt Scheme Performance Appointed October 2018 Natalie McColl Dr Samantha Smith Rapid Recovery Appointed February 2017 Re-appointed February 2020 Damian Poel Supported Recovery 5 TAC Annual Report Highlights $1.51b paid to help injured Victorians get their lives back on track 3,673 clients returned to work including a record 123 of our most seriously injured clients A Client Outcome Score of 7.23/10 a strong measure of our efforts to get lives back on track 6 Client Completed Satisfaction Score a further four TAC’s 8.05/10 vision well above comparable industry standards purpose-built units for our most seriously injured clients - taking 93% the total number to 34 of clients tell us the TAC treats them with respect & sensitivity 1,306 common law Percentage of clients resolutions now using our app resolved in record time myTAC to lodge claims and receipts 45.5% $236m spent on 59,298 life saving infrastructure including more than Victorians supported 830km of flexible barriers with their transport installed on Victoria’s accident claims most dangerous roads 7 TAC Annual Report CEO’s report CEO’s Chair and When the 2019/20 �nancial year came to a close, the TAC, like many other organisations, was still experiencing the impacts of the coronavirus (COVID-19) pandemic. The health crisis has presented We could not be prouder of how our enormous challenges for all members people seamlessly transitioned and the of the community, including those ingenuity they have shown in �nding new recovering from transport accidents, ways of getting the job done. the providers who support them and Despite the many challenges faced the TAC itself. Since early in March over the past 12 months, the TAC's 2020, almost all of our employees performance improved across many key have been working remotely, with areas. We have helped a record number a clear commitment to ensuring that of clients return to meaningful work, service levels and supports to clients which is key to helping them get their be maintained. lives back on track. In recent years, the TAC has Close to half of all TAC clients are now undertaken a major modernisation of using the myTAC digital app, ensuring our technology infrastructure and immediate post-accident support for platforms. This upgrade was not an those who need it, and we have taken easy undertaking, but given the important strides in becoming a more circumstances of recent months, contemporary disability provider by giving proved to be both timely and critical to clients greater independence and a much the continuity of supports bigger say in their own life care plans. and services. Greg Wilson Joe Calaf iore Chair Chief Executive Officer 8 More recently we increased the fees Sadly, 266 people died on Victorian The TAC will continue to work with the we pay to attendant carers, and roads in 2019. This �gure, 53 higher Department of Transport, Victoria continue to work with federal and state than the previous year, is unacceptable Police, the Department of Justice and authorities to improve the quality and and, while we take some heart that other road safety partners on the safeguards for the care of our clients. the number of fatalities in the second development of a new road safety Our Client Experience score sits at half of last year and in the �rst six strategy that will shape how we eight out of 10 – well above industry months of 2020 have trended lower, educate and safeguard road users for standards, and our annual Employee we know we need to do more. This years to come. Similarly, our new Opinion Survey results tells us our means trying new and di�erent ideas, corporate strategy presents many sta� are engaged and proud to work including, in the case of one iconic opportunities and a pathway for for the TAC. TAC campaign, stepping back in time positive change. The last �nancial year also saw a to reach a new generation. Continuing challenges presented by marked improvement in the TAC’s The TV advert, dubbed ‘Bend your the coronavirus (COVID-19) pandemic insurance operations. Working closely knees Katie’, was �rst aired in 1992 will unfortunately mean ongoing with allied health providers, we and re-launched again in June this uncertainty for the remainder of 2020 continued to deliver a high level of year – the 50th year of seatbelts and potentially beyond. The TAC would supports with demonstrable links to being made mandatory in Victoria – like to thank all health and emergency better client outcomes. Through amid a worrying increase in fatalities service workers, our providers, e�ective claims management and a involving drivers and passengers not stakeholders and community partners focus on operational e�ciencies, buckling up. for their assistance in ensuring that our the TAC recorded our best ever In the past 12 months, as part of the clients continue to receive the supports Performance from Insurance largest rollout of road safety they deserve. We would also like to Operations (PFIO) result of $744 million. infrastructure in the state’s history, thank all of our TAC sta� for their hard Notwithstanding our strong more than 830 kilometres of new work, intellect and passion in continuing performance from insurance �exible barriers were installed on to perform in changing circumstances. operations result, weak investment Victoria’s most dangerous roads. Finally, in June 2020 we witnessed a returns, combined with record low And through recently created changing of government ministerial Commonwealth bond rates, partnerships with local governments, portfolios. We welcome Ben Carroll MP contributed to a pro�t of $179 million. sporting clubs and events, we have as the new Minister for Roads and These �nancial results, coupled with reached deeper into grassroots Road Safety and Assistant Treasurer an insurance funding ratio of 137.1%, communities than ever before with Danny Pearson MP. On behalf of our provide our clients and the Victorian our road safety messaging. organisation, we also wish to thank community with con�dence that Jaala Pulford MLC and Robin Scott MP the TAC is in a strong, sustainable for their support of the TAC in their position to keep supporting injured time in these respective roles over Victorians for decades to come. recent years. 15/16 16/17 17/18 18/19 19/20 Impact on Profit $M $M $M $M $M Performance for insurance operations 542 142 (424) (1,538) 744 Impact on pro�t from external factors: Di�erence between actual investment returns and long-term expected returns (524) 516 363 18 (973) Change in in�ation assumptions and discount rates (1,268) 1,289 (619) (3,576) 459 Repayment of capital (78) (30) - (255) - Tax 395 (573) 233 1,549 (51) Net profit/(loss) after tax (933) 1,344 (447) (3,802) 179 Insurance Funding Ratio1 156.4% 164.0% 164.8% 137.7% 137.1% (1) Insurance funding ratio from 2018/19 includes a risk margin and uses a long term investment return of 7.25%. 9 TAC Annual Report the TAC the About The Transport Accident Commission (TAC) is a Victorian Government-owned organisation whose role is to promote road safety, support those who have been injured on our roads and help them get their lives back on track.