Many NSW drivers could enjoy much cheaper green slips from July 2017, according to Minister for Innovation and Better Regulation, Victor Dominello. At last, people injured on the roads will also get faster, better support.
Following responses to its discussion paper, the NSW government will create a new, improved CTP green slip scheme. In the old scheme, people injured had to negotiate a claim with their insurer. This could often be a long and stressful process.
The new hybrid scheme will be a practical combination of defined benefits and common law. Around 40% of claims now are for less severe injuries and these have put an extra burden on the scheme. There will now be defined benefits for less severe claims, such as whiplash. Common law lump sums will be available for people who are seriously injured.
Defined benefits
- For people injured in motor accidents regardless of fault
- They cover loss of earnings and medical expenses up to 5 years and care help for up to 2 years
- Injured people do not have to prove who was at fault.
Common law
- For serious injuries when another driver is at fault
- Lump sum compensation for pain and suffering and loss of earning capacity
- Ongoing medical and care costs.
As long as the Bill passes, the new CTP green slip scheme could be working from July 2017. The main thrust of the new scheme is to cut the price of green slips, reduce fraud, and get help when and where it is needed, for example:
- Pay 55% (currently 22%) of benefits within 2 years of an accident
- Pay 60% (currently 45%) of total premiums to injured people as benefits.
Defined benefits will help deter people from making fraudulent and exaggerated claims and the authorities will be able to take strong action against fraud.
Cheaper green slips
Most drivers can expect a “substantial reduction in premiums”, according to the NSW government. Do what you can to reduce your premium now, for example, by keeping demerit points to a minimum. Get quotes for your green slip here.
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