SIRA Logo

Green Slip refunds

A refund will be offered to eligible people from early 2018.

This is because CTP Green Slip prices will be reduced for most classes of vehicles* from December 2017 when the new scheme starts. So, if you purchase or renew your Green Slip before 1 December you will be paying pre-reform prices.

See the table of refund estimates. These are based on average premiums by vehicle class and the month the Green Slip was purchased.

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.

Tip: If you are renewing your Green Slip now, there is no need to take out a six month policy. In fact, six month policies are more expensive than 12 month policies, so in the long run you may be better off financially to renew for 12 months and wait for your refund.

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 will remain similar to what they are now. See the question below on motorcycles.

Frequently asked questions

1. How will the refund be calculated?

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.

2. What is this refund for?

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.

3. How much will the refund be?

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.

See the table of refund estimates. These are based on average premiums by vehicle class and the month the Green Slip was purchased.

4. Who is entitled to a refund?

The owner of the vehicle as at midnight on 30 November 2017 will be eligible for the refund.

The refund will apply to private and commercial vehicles of all classes, except motorcycles.

Motorcycle owners will not receive a refund.  See the question on motorcycles for an explanation.

5. Will I get the refund if I purchase a vehicle with an existing CTP policy?

Yes. The residual value of the CTP Green Slip is generally factored into the sale price of the vehicle, so it is only fair that the new owner receives the refund. However, it is important that you complete the transfer of ownership with Roads and Maritime Services (RMS) at the first possible opportunity and no later than 30 November 2017.

The owner of the vehicle according to RMS records on 1 December 2017 will determine who receives the refund, so if you have not transferred the vehicle ownership into your name before that date then the refund will go to the previous owner.

6. When will I get my refund?

Refunds will start from early 2018.

7. If my Green Slip is due before prices come down am I better off just getting a six-month policy?

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.

8. Did my insurer organise the 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.

9. 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.

10. Why are motorcycle owners not getting 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. SIRA suggests motorcycle owners shop around to determine the best available price for their Green Slip.

11. Am I entitled to a refund?

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.

12. How do I claim my refund?

The details of how refunds will be provided are being finalised. We will notify all policy holders over the coming months.

As the Government is recouping the extra money paid from insurance companies, there is no need to contact your insurer.

13. Can I have the amount credited to my policy?

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.

14. What if I bought my car since the policy was issued?

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.

The owner of the vehicle according to Roads and Maritime Services (RMS) records on 1 December 2017 will determine who receives the refund, so if you have not transferred the vehicle ownership with RMS before this date then the refund will go to the previous owner.