Green Slip reforms refunds

A refund will be offered to eligible people from early 2018.

This is because CTP Green Slip prices were reduced for most classes of vehicles* from 1 December 2017 when the new scheme started. So, if you purchased or renewed your Green Slip before 1 December you may have paid pre-reform prices.

See the table of refund estimates. These are based on average premiums by vehicle class and the month the Green Slip was purchased.

The refund will apply to the owner of the vehicle as at midnight 30 November 2017 and will be calculated on a pro-rata basis. That is, the closer you purchased a policy to 1 December 2017, the greater your refund will be.

See the questions and answers below for more information.

*Motorcycle owners will not receive a refund. Instead, injured motorcycle riders, particularly those at fault in the accident, will get more benefits under the new scheme. See Question 9 below.

Frequently asked questions

1. What is this refund for?

The refund is a direct result of the NSW Government's CTP Green Slip reforms. When the new scheme started on 1 December 2017, prices were reduced for most vehicle owners.

You can read more about how the new CTP Green Slip scheme reduced prices.

2. How will the refund be calculated?

Refund amounts will be calculated on a pro rata basis, so when you purchased your Green Slip in the 12 months prior to the new scheme starting will determine the amount of your refund.

Those who purchase a Green Slip in the months closest to the start of the new scheme (1 December 2017) will get a greater refund because the greater part of their policy falls under the new scheme.

3. How much will the refund be?

The refund will be the difference between the old scheme price and new scheme price calculated on a pro rata basis. Amounts will vary depending on when you purchased your last policy, the type of vehicle and where you are located.

The closer a Green Slip was purchased to 1 December 2017 the greater the refund will be.

See the table of refund estimates. These are based on average premiums by vehicle class and the month the Green Slip was purchased.

4. Is there a minimum refund amount?

A small administration fee will be deducted and a $10 threshold amount applies. Any refunds below $10 will not be provided.

Refund amounts under the threshold (along with any unclaimed refunds) will be collected by SIRA and returned to all policy holders via a reduction in the Fund Levy, which is part of the CTP policy. The Fund levy pays for ambulance and hospital admittance costs for all injured people on NSW roads as well as the Lifetime Care and Support scheme for those who are severely injured.

5. Who is entitled to a refund?

The owner of the vehicle as at midnight on 30 November 2017 will be eligible for the refund, except if the amount falls under the $10 threshold before or after the administration fee is applied.

The refund will apply to private and commercial vehicles of all classes, except motorcycles (see Question 9).

6. When will I get my refund?

There are 4.2 million vehicle owners eligible for a refund.

Refunds will start from early 2018. Businesses and taxi owners will be the first to receive their refunds from mid-January.

Some regional locations will receive notification of their refunds in February so that Service NSW can test their refund system.

The remainder of the 4.2 million policy holders can claim their refunds from March.

7. How do I claim my refund?

Businesses and taxis will be sent their refunds directly from January 2018.

Refunds for private vehicle owners will be delivered through Service NSW, with an advertising campaign commencing in March to inform motorists of how to claim their refund.

As the Government is recouping the extra money paid from insurance companies, there is no need to contact your insurer.

8. Am I entitled to a refund?

Most people who have a passenger vehicle can expect a refund. Amounts will vary depending on where the vehicle is located and other factors, such as when the Green Slip was purchased in the previous year.

Some passenger vehicle owners will not get a refund if they renewed early in 2017 or late 2016 and their refund amount is under the $10 threshold. These small refunds will be collected and returned to all policy holders via a reduction in the Fund Levy.

Motorcycle owners will not receive a refund. See Question 9 for more information.

9. Why are motorcycle owners not getting a refund?

Green Slip prices will not come down for motorcycles under the new CTP scheme and therefore there is no refund for motorcycles.

With the new six month no-fault period, injured motorcycle riders, particularly those at-fault in the accident, will receive more coverage and benefits including weekly income payments and medical costs.

Their prices will remain similar to the previous scheme, unless there is a change in their risk factors resulting in a higher premium, in which case it pays to use SIRA’s Green Slip Check and shop around for the best price.

Motorcycle riders are more likely to be injured in an accident than other types of vehicles. They only make up 4% of registrations yet account for 12% of injury accidents.

Another reason they are not getting a refund/reduced premiums is that the costs of their injury claims are significantly higher than injuries in any other class of vehicles. The average cost of a motorcycle injury claim is between $250,000 and $300,000 (compared to around $100,000 for other vehicle class injuries). With the new no-fault scheme for the first six months, claims costs for injured motorcycle riders will increase.

Source: NSW Crashlink database from the Centre for Road Safety (Transport for NSW)

10. Will I get the refund if I purchase a vehicle with an existing CTP policy?

Yes. The CTP Green Slip insurance is attached to the car. The residual value of the CTP Green Slip is generally factored into the sale price of the vehicle, so it is only fair that the new owner receives the refund. However, it is important that you complete the transfer of ownership with Roads and Maritime Services (RMS) at the first possible opportunity.

The owner of the vehicle as at 30 November 2017 according to RMS records will determine who receives the refund, so if you have not transferred the vehicle ownership into your name before that date then the refund will go to the previous owner.

11. Did my insurer organise the refund?

The NSW Government through the State Insurance Regulatory Authority (SIRA) will recoup the over-collected money from CTP insurers to return to policy holders as refunds.

There is no need to contact your insurer about the refund.

12. If insurers knew that lower prices were coming into effect, why have people had to overpay and then get refunded?

We considered the option of a gradual reduction in prices starting from mid-2017. However, as the legislation was only passed in March 2017, much of the rules and definitions that have an impact on prices were decided in recent months.

Also, a large number of people purchased their Green Slip before the legislation was passed so the only solution for this group is a refund.

13. Can I have the amount credited to my policy?

We considered this method and decided to provide refunds directly to people instead of reducing policies. This is because people do not automatically renew their policy with the same insurer. Many people use SIRA's Green Slip Check to shop around for the best price. The Government does not want to encourage people to stay with their current insurer as the only means by which they receive the refund, particularly in instances where a better price can be obtained from another insurer.