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CTP fraud

Compulsory third party (CTP) insurance covers you if you injure someone in a motor vehicle accident. Fraudulent claims cost NSW motorists by adding to their CTP premiums.

CTP fraud can include exaggerated claims, staged accidents, lying about a claim or providing false or misleading information to an insurer, doctor, health professional or lawyer.

It can be perpetrated by claimants, vehicle owners and/or service providers.

CTP fraud can be prosecuted as an offence under:

We have been working with insurers and other agencies to identify, manage and deter fraudulent claims by:

  • analysing data across the industry
  • reporting trends and suspicious issues to the CTP Green Slip insurers
  • encouraging insurers to adopt best practice fraud identification and prevention strategies
  • monitoring and collating the results of insurer initiatives
  • working with multiple agencies to facilitate the investigation of suspicious activities
  • exploring overseas experiences related to personal injury fraud
  • establishing a multi-agency taskforce and providing resources to investigate CTP fraud in NSW
  • setting up the CTP Insurance Fraud hotline with the Insurance Fraud Bureau of Australia so members of the public can report suspected fraud.

How to report CTP fraud

If you've seen or suspect a fraudulent CTP personal injury claim, report it to the insurance fraud hotline:

All reports will be treated confidentially and can be made anonymously.

CTP fraud taskforce

As part of the multi-agency taskforce formed in 2016 to deter, detect and prosecute fraudulent claims, SIRA worked in strong collaboration with the NSW Police Force and CTP insurers, as well as other peak and investigative bodies.

The taskforce led to the establishment of the NSW Police Strike Force Ravens in August 2016. Taskforce representatives were drawn from NSW Government agencies and the legal, health and insurance sectors.

SIRA worked extensively with the NSW Police to provide analysis and data on the CTP scheme and suspected unlawful activity. As a result, the NSW Police were provided with mapped data analysis and intelligence indicating participants within the scheme who were associated with increased rates of claims.

In 2016-17, Strike Force Ravens resulted in 11 arrests and 89 charges, concerning fraudulent claims totalling in excess of $10 million.

Strike Force Ravens has also investigated fraudulent activities of service providers in the CTP scheme and referred one service provider to the Health Care Complaints Commission (HCCC) for unethical conduct. More arrests are expected.

You can read about these on the NSW Police Force website.

SIRA continues to provide support in the form of intelligence and data to the NSW Police as part of their ongoing partnership to target fraud within the NSW CTP scheme. Following publicity about arrests by Strikeforce Ravens, SIRA identified reductions in minor represented claims and increased levels of withdrawn claims within the scheme.

Read the taskforce communique and terms of reference.

The taskforce was announced by the Minister for Innovation and Better Regulation, Victor Dominello, in 2016. Read the media release.