The Motor Accident Injuries Bill 2017 passed NSW Parliament at the end of March. It will operate from 1 December 2017 and takes the first step towards reform of the NSW CTP scheme.
New safety net
The new Act will provide a new safety net for all injured road users, whether at fault or not. For 6 months, they will receive benefits to cover loss of income and the cost of medical treatment and care. Those with more serious injuries will be able to make claims for lump sum compensation.
Minister Victor Dominello expects these changes to dramatically reduce the cost of NSW premiums from $700 to $520 for Sydney drivers. Country drivers currently pay $480 and will see a reduction of about $50.
Taxi drivers pay disproportionately high annual premiums compared to other vehicle owners. They will see a big drop of up to $3,000 per year.
First step
The main purposes of the reform are to cut the price of green slip premiums. Others are to stop insurers making excessive profits and deter people with minor injuries from making fraudulent claims.
This bill is the first step in reform. The second step is for State Insurance Regulatory Authority (regulator) to work with industry stakeholders to develop guidelines and regulations. Guidelines and regulations set out the exact details of how the Act will be carried out.
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