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.
New taskforce
False or exaggerated claims are contributing to a $75 increase for each green slip, or $150 million a year. Average claims currently cost between $95,000 and $100,000 because of lengthy legal process.
The new taskforce, headed by the CEO of State Insurance Regulatory Authority (SIRA), will tackle CTP greenslip fraud head on. The taskforce will:
- Develop strategies to deter, detect and respond to dishonest claims
- Begin an education awareness campaign to make it a community concern
- Involve representatives from NSW government agencies, and the legal, health and insurance sectors.
Kinds of fraud
There are many possible kinds of CTP fraud, including exaggerated claims, staged accidents, and lying or giving misleading information to a doctor or lawyer. Vehicle drivers, passengers and service providers may all commit CTP fraud.
For example, somebody made a claim for a baby, based on psychological injuries and the future effect on earning potential. Someone else was told they would get a higher payout if they did not return to work, even though they were capable of doing so.
New two-tier system
The Daily Telegraph says the NSW government plans to introduce a new CTP two-tier system for minor and major injuries. People with minor injuries like whiplash would receive a set amount of compensation so the matter would not go to court.
Clearly, nobody wants to pay more than they have to for a greenslip. Anyone with information about possible fraud are urged to call the CTP Fraud Hotline on 1800 600 444.
For the best price on your greenslip, go to Cost Comparison and click on greenslips.com.au Calculator.
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