CTP insurance claims in Sydney are through the roof. In fact, claims on green slips in Sydney rose 39% this year, even though road casualties were lower. It’s a suspicious trend, as claims on all types of insurance were up 30%. Insurance fraud is estimated to cost the industry a staggering $2 billion a year.
Most people seem to agree that the current CTP scheme in NSW isn’t working well. This is why the NSW government called this year for submissions to its proposals for reform.
Greenslip prices in NSW have climbed more than 70% in the last 7 years and by over $40, or 8%, in 2015. The NSW government says fraudulent CTP claims are part of the problem. So alarming is the trend, it has established a taskforce to investigate fraud and a fraud hotline to encourage people to come forward and share information.
Minister for Innovation and Better Regulation, Victor Dominello, says the average greenslip price for a car in Sydney is now more than $600. This is more than 34% of average weekly earnings compared to 28% in 2007.
South Australian (SA) motorists will from 1 July 2016 get compulsory third party (CTP) vehicle insurance from four private CTP insurers, rather than the Motor Accident Commission (MAC).
From 1 July 2016, four private insurers will provide CTP insurance:
Zurich to cease offering NSW CTP green slips from 1 March 2016, subject to approval from State Insurance Regulatory Authority (SIRA).
Purchasing your green slip has become much easier. As of 6 November 2015, your insurer is able to get some of your details directly from Roads and Maritime Services (RMS).
This saves you the trouble of providing these details and it means you will be charged the correct amount for the premium.
After you buy your green slip, your insurer will send your green slip details to the RMS straightaway. Hard copy receipts will no longer be required for new registrations..
.As a consequence of reform to the NSW Workers Compensation Scheme, there have been two significant changes to the NSW CTP insurance scheme.
The Motor Accidents Authority (MAA) was abolished, effective from 1 September 2015. Functions of the MAA will transfer to a new Authority, the State Insurance Regulatory Authority (SIRA).
Another new organisation, Insurance & Care NSW (icare) will be the service provider for the Lifetime Care and Support Authority.
In our news article of 6 February we announced changes to the process of purchasing a green slip. These changes take place from 23 March 2015.
There has been a delay in the implementation of the changes.
Agreement between insurers and the RMS as to the basis for exchanging information is not yet final.
At this stage it is not clear when agreement will be reached nor when the changes will be implemented.
It is hoped that the delay will only be for several weeks.
From 23 March 2015 the process of purchasing a green slip will be streamlined to make it faster and easier.
Rather than enter all your vehicle details into the insurers system, you will be required to enter two pieces of information to identify your vehicle. The rest of the information download automatically from the RMS. The information downloaded from the RMS will include the details of your vehicle but will not include personal information such as your name, address or demerit point status.
Once you have purchased your green slip, details will be transferred immediately to the RMS (including new registrations which were previously reliant on hard copy receipts).
All seven green slip insurers are adopting the new system.
There are several benefits from the new system. You will need to enter less information, making the process faster and easier. You can complete your registration immediately after you have purchased a green slip and because your vehicle details are being downloaded from the RMS, quotes will be more accurate.
Samples of the information you will need to provide to identify your vehicle from 23 March 2015 are set out below.
For renewals or if you don’t have your registration papers you can also use your vehicles VIN, Engine or Chassis Number as part of the identifying information.
The new system will not impact other areas of the CTP insurance scheme.
If you didn’t find the answer to your question, please send it to us and we will answer it as soon as we can.