Around $120 will be shaved off the average Green Slip for motorists across the State under the NSW Government’s fairer and more affordable CTP reforms, Premier Gladys Berejiklian and Minister for Finance, Services and Property Victor Dominello have announced.
Under the new model, there will be a new safety net allowing all injured road users to access benefits for loss of income and medical expenses for up to six months, with lump sum compensation retained for those with long-term injuries. Statewide average premiums will drop from $650 to $528.
“Over the last decade, Green Slip prices have increased by 85 per cent in Sydney, with the average Sydney motorist now paying $703, and country motorists paying $482,” Ms Berejiklian said. “This is simply unfair and motorists deserve better.”
NSW motorists currently pay the highest CTP premiums in the nation mainly due to a significant spike in minor injury claims and related costs, insurer profits and fraud.
Ms Berejiklian said the new scheme will protect those with genuine injuries and ensure the bulk of premiums go towards injured motorists rather than legal fees and administrative costs.
“The current scheme has become the least affordable in the country and just 45 cents in every Green Slip dollar is returned to injured road users,” Ms Berejiklian said. “The rest is chewed up in scheme costs, including insurance company profits and legal fees.
“We are committed to stamping out fraudulent and exaggerated claims and excessive scheme costs so we can deliver much needed premium relief to the motorists of NSW.”
Mr Dominello said the reforms fulfilled a Government promise to deliver a fairer and more affordable scheme.
“Make no mistake – this is a big win for motorists,” Mr Dominello said. “The new scheme will deliver fast access to benefits for those who are legitimately injured on our roads; it will reduce the exaggerated claims; it will deliver more of the premium dollar back to the more seriously injured; and it will deliver cheaper Green Slips.
“We have worked in close collaboration with the key stakeholders to get to this point and I would like to thank them for their contribution towards making this scheme great again. This is complex but vital reform.”
The Government’s reform of the CTP Green Slip Scheme will also see a significant reduction in annual premiums for taxi owners in metropolitan areas of up to $3000 per year.
A Bill will be introduced this week and, subject to Parliament’s approval, a new Green Slip scheme is likely to commence in December 2017. Further information is available at www.sira.nsw.gov.au.