More CTP dollars going to injured people

The key objective of the Green Slip scheme is to provide support to people who are injured on NSW roads.

Under the previous scheme, too much of the total premiums collected was spent on areas other than injured people. And the amount that was going towards injured people was skewed in favour of minor injury claims, leaving fewer funds for the more seriously injured.

Where was the money going under the previous scheme?

Only 45 cents* of each $1 paid in premiums to CTP insurers went to injured people. And of this amount less than half was going to the more seriously injured, a proportion which has declined significantly over the last 15 years because of a significant increase in minor injury claims.

This was largely a result of the previous scheme’s design. As a predominantly common law, fault-based scheme, the previous CTP scheme was based on the need to establish fault and the cause of an accident.

This often required complex investigations and expensive legal and medical advice. In addition, greater uncertainty and delays in claims settlement meant that insurers were pricing in higher profit margins.

*Excludes GST and the Lifetime Care and Support levy

A higher proportion of CTP funds for injured people

Independent research found that the community expected a greater proportion of total premiums collected to go to injured people.

Under the new CTP scheme, 57 cents in every premium dollar collected will be returned to injured people as benefits, with two-thirds of this going to support those with more serious injuries.

Coverage for more people

The new CTP scheme will see an additional 7,000 people (including 1,400 motorcyclists) who are injured on our roads each year provided with necessary medical and treatment, income payments and commercial attendant care for up to six months.

These people were previously excluded from benefits beyond $5000 combined income and medical costs, as they were either ‘at fault’ or could not identify an ‘at fault’ person in the accident.