The current CTP Green Slip scheme has been in place for many years and is no longer serving injured road users and policy holders well.
The current scheme is broken
An injured person often waits between three and five years to receive compensation for loss of income.
Only 45 cents* in every CTP dollar collected by insurers goes to injured people as benefits. The rest goes in scheme costs, insurer profit and legal costs.
NSW has some of the highest premiums in Australia and without reform, prices will continue to rise.
Fraudulent claims are estimated to add up to $75 to the cost of each Green Slip.
Objectives for reform
During 2016, a number of options were examined to improve the CTP Green Slip scheme.
The Government consulted extensively on how to improve the scheme and believes the final reform model best addresses the key objectives which are to:
- reduce the time it takes to resolve a claim
- increase the proportion of benefits provided to the most seriously injured road users
- reduce the cost of Green Slip premiums
- reduce the opportunities for claims fraud and exaggeration.
*Excludes GST and Lifetime Care and Support Levy