SUN TO SET ON INSURERS’ CTP SUPER PROFITS RIP-OFFS

Tuesday, 8 November 2016

NORTHERN Tablelands MP Adam Marshall say country motorists can add their feedback to a NSW Government plan to reform the CTP Green Slip insurance scheme to ensure a fairer and more affordable one for motorists and injured road users.

Mr Marshall has welcomed the next step in the industry reform with the release of the discussion paper and says regional residents can provide their feedback so a bloated and out-of-control scheme is scrapped and an overhaul of the Compulsory Third Party Motor Accident Insurance scheme sees a fairer system put in place.

Mr Marshall said that under the currently scheme only 45 cents in every Green Slip dollar goes to injured road users, with the rest going to scheme costs including insurer profits and legal fees.

“This scheme is the least affordable insurance scheme in our country,” Mr Marshall said.

“Insurer profits are unacceptably high and result in motorists paying higher Green Slip premiums.

“Since the current NSW CTP scheme was introduced in 1999, insurance companies have made an average profit margin of about 20 per cent.

“Some passenger vehicle owners are paying up to $886 for their premiums now; that’s absolutely not on.

“And we can expect premiums to go up by up to 20 per cent in a few years if we don’t act now to contain what I think is a blatant rip-off of country motorists.

“We are determined to put an end to the days of insurer super profits. Our reforms will provide Government with greater powers to regulate these profits so that more money goes to injured road users. The changes will also see a significant reduction in premiums for motorists.”

Mr Marshall spoke in parliament two months ago, calling for a major overhaul, after discussions with taxi drivers and cooperatives across his electorate who were at boiling point over the excessive gouging.

“I’d encourage motorists right across the electorate to have a say with the release of this discussion paper which includes a number of regulatory and administrative changes that are already in train, as well as seeking feedback on additional legislative changes to wind back insurer profits to a reasonable level,” he said.
He said Minister Victor Dominello had also announced the appointment of Dr Graeme Innes AM as a member of the NSW State Insurance Regulatory Authority Board, whose background as a lawyer and disability advocate gave him an understanding of the challenges faced by those who are injured and who would advocate for a scheme that protects injured road users and ensures they have optimal outcomes.

Further information on the discussion paper, including how to make a submission is available at www.greenslipreforms.nsw.gov.au. Submissions close 25 November.

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