Minister for Innovation and Better Regulation Victor Dominello today announced a major review of the NSW CTP Green Slip Scheme aimed at creating a fairer and more affordable system for road users.
Mr Dominello said the current scheme, in operation since 1999, was now the least affordable in the country, with premiums increasing by 70 per cent since 2008.
“Most motorists in NSW are now paying around $600 or more for their green slip and without reform of the scheme, premiums are forecast to increase by a further 10 to 20 per cent over the coming year,” he said.
“Over the past decade only 45 cents in every premium dollar has been returned in benefits to injured road users, with the rest going towards scheme costs and providers.
“The scheme has become inefficient and unsustainable. The NSW Government is committed to working in consultation with insurers, lawyers, medical professionals and other stakeholders to deliver a better scheme for NSW road users.”
The NSW Government has published an options paper to facilitate public consultations, with the review focusing on four key objectives:
- Increasing the proportion of benefits provided to the most seriously injured road users;
- Reducing the time it takes to resolve a claim;
- Reducing opportunities for claims fraud and exaggeration; and
- Reducing the cost of green slip premiums
The Government has also released an independent review of insurer profits that makes recommendations regarding premium prices, risk rating, the level of competition within the existing scheme and barriers to entry.
The options paper and insurer profit review are available at www.sira.nsw.gov.au/CTP-reforms. Public consultation closes on 22 April and the Government plans to announce its response in the second half of the year.