A refund will be offered to eligible people from January 2018.
The refund will apply to the owner of the vehicle as at midnight 30 November and will be calculated on a pro-rata basis. That is, the closer you purchase a policy to 1 December, the greater your refund will be.
Everyone who is entitled to a refund will be notified. See the questions and answers below for more information.
*Motorcycle owners will not receive a refund. Instead, injured motorcycle riders will get more benefits and their prices won’t increase. See the question below on motorcycles.
Frequently asked questions
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.
The refund is a direct result of the NSW Government's CTP Green Slip reforms. When the new scheme starts on 1 December 2017, prices will come down for most vehicle owners.
You can read more about how the new CTP Green Slip scheme will reduce prices.
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.
The owner of the vehicle as at midnight on 30 November 2017 will be eligible for the refund. Motorcycle owners will not receive a refund. See the question on motorcycles for an explanation.
Most people will start to receive their refunds from January 2018.
Refunds will be prioritised for those receiving the greatest amounts first. This includes taxi owners and business fleets.
There is no need to take out a six month policy. In fact, six month policies are more expensive than 12 months policies, so in the long run you may be better off financially to renew for 12 months and wait for your refund.
The NSW Government through the State Insurance Regulatory Authority (SIRA) will recoup the refund money from CTP insurers.
This money is the difference between prices charged under the old scheme from 1 December 2016 and the new scheme starting 1 December 2017.
The Government has been investigating options for how to provide the refund efficiently to policy holders.
8. If insurers knew that the reforms were coming into effect, why have people had to overpay and then get refunded, rather than pay an amount that reflects both old and new scheme prices?
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 are only being decided now.
Also, a large number of people purchased their Green Slip prior to the legislation being passed so the only solution for this group is a refund.
Green Slip prices will not come down for motorcycles under the new CTP scheme and therefore there is no refund for motorcycles.
This is because in 90% of accidents involving motorcycles, the rider is deemed to be at fault (often single vehicle accidents) and cannot claim against another policy. Under the current scheme, motorcycle riders receive little benefits.
Under the new scheme, while they won’t pay less, they will get more benefits (weekly income payments and medical costs) for up to 6 months, regardless of fault, and longer if not at fault and with more serious injuries. Their prices will not increase to cover these extra benefits.
All people who are entitled to a refund will be notified.
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.
Motorcycle owners will not receive a refund. See the questions on motorcycles for more information.
This is still being worked out. We will notify all policy holders once details are confirmed.
As the Government is recouping the extra money paid from insurance companies, there is no need to contact your insurer.
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 calculator and shop around for the best price.
The insurance goes with the vehicle and is generally included in the sale price of the vehicle. The refund will be calculated based on what the previous owner paid and will be made available to the owner of the vehicle as at midnight on 30 November 2017.