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Why reform was needed

The previous CTP Green Slip scheme had been in place for 18 years and was no longer serving injured road users and policy holders as well as it could.

The previous scheme was broken

An injured person often had to wait on average between three and five years after the motor accident, to receive compensation.

Only 45 cents in every CTP dollar collected by insurers (excluding GST and Lifetime Care and Support Levy) went to injured people as benefits. The rest went in scheme costs, insurer profit and legal and investigation costs.

NSW had some of the highest premiums in Australia and without reform, prices would have continued to rise.

Fraudulent claims were 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 and the final reform model best addressed the key objectives which were 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.