It’s not everyday the government has good news for car owners. But in NSW, Australia, the NSW compulsory third party (CTP) scheme just had an overhaul. Most vehicle owners will get cheaper CTP – and a refund if they’ve overpaid.
Drivers in NSW don’t need reminding they pay the highest CTP premiums in Australia. Their CTP (or green slips) have increased a huge 85% in 10 years. Without reform to the scheme, they could only look forward to more nasty price rises.
The NSW government passed legislation to reform the NSW CTP scheme starting from 1 December, just in time for Christmas. The purpose of reform is to:
- Make sure genuinely injured people can get benefits they need quickly
- Pay a higher share of each premium to more seriously injured people
- Reduce exaggerated or fraudulent claims for minor injuries
- Make green slips cheaper (around 20%).
The new scheme provides a mixture of fixed benefits and common law or lump sum claims. It provides a new safety net for all injured road users, whether it was their fault or not. For 6 months, they receive benefits to cover loss of income and the cost of medical treatment and care. Those with more serious injuries will still be able to make lump sum claims.
As people with minor injuries can no longer claim lump sums, there is less incentive for fraud. Fraud was a huge problem in NSW. Already, NSW police have charged several people in Sydney for organised greenslip crime, eg, sham crashes, non-existent injuries.
Cheaper green slips
The average greenslip price for Sydney drivers will be about $553, down from $710. Taxi drivers will do even better. Average premium for them could tumble down from $8,336 to $4,947. Good news for taxis. Unfortunately, motorbike owners won’t get lower prices or refunds, but they will get more for their money. Under the old scheme, 90% of motorcycle accidents were seen as the rider’s fault so they received limited benefits. Now injured motorcycle riders will be entitled to more benefits, whether at fault or not.
And refunds too
Vehicle owners who have already paid higher prices will get a refund. It will be a percentage of what they overpaid as at midnight 30 November 2017. This means the closer to 1 December they bought their green slip, the higher their refund. The government will pay out refunds from January 2018. People who are owed the most will be refunded first, for example, taxi and fleet owners.
Most people have no idea what CTP is and resent having to pay it. But they will surely welcome a refund of what they already paid. Car owners in NSW can use a simple online calculator [https://www.greenslipcalculator.com.au/ ] to work out what their premium will be on the day their registration is due. They should get a nice surprise.