Lobby group Pedal Power ACT told an inquiry into the reforms it would prefer to keep the current rules than switch to the new scheme, although it welcomed a plan to cover all people injured in a crash involving a bike and an insured motor vehicle, regardless of fault.

Pedal Power board member Jeff Ibbotson told MLAs the driving force behind changes to the scheme appeared to be saving money rather than improving compensation for crash victims.

"Why change to something we think is worse?" he said.

"We can't support the reduction in benefits, we just don't think it's a sufficiently appropriate scheme for compensating people who have been injured in a car crash."

Changes proposed to the scheme emerged from an ACT government experiment asking ordinary people or a "citizen's jury" to solve policy questions.

Pedal Power was not convinced the proposed scheme provided value for money, and said it did not focus on improving safe driving in the ACT, a failure Mr Ibbotson described as a "huge disappointment".

He told the inquiry the reforms would impose "unjust" and "unjustified" reductions to entitlements. A move to reduce income benefits by ceasing payments after five years for cyclists would be a "real step backwards," he said.

The new scheme would cap lost income, Pedal Power warned in its written submission.

Pedal Power opposes a cut to entitlements for cyclists involved in crashes while not wearing helmets, arguing it would punish them for a decision that in many cases had no bearing on their injuries. Stopping income payments when crash victims reached the pension age, plus 26 weeks, was another failure, Mr Ibbotson said.

"That's mean and penny pinching, which just doesn't show how it's providing value for money for people who have been in a car crash."

Mr Ibbotson also warned the new scheme would give insurers wide discretion, but it was unclear how they would be held to account.

He called for a well-resourced and active regulator to check their influence.

Asked to choose between the current and proposed scheme, Mr Ibbotson preferred the current one but with no-fault aspects added. He called for calculations to determine the additional cost of no-fault measures in the proposed scheme.

The Barr government has previously said there would be strict rules in place covering how insurers dealt with injured motorists, with the creation of a commission for motor accident injuries.

Unions have told the Legislative Assembly inquiry into the compulsory third party insurance bill the changes were unfair and would shift the power away from injured people, while one has also raised concerns about the "citizen's jury" process used to shape the scheme.

The inquiry, expected to report by December 14, has received more than 70 submissions commenting on the changes to the ACT's scheme.