CTP (Green Slip) Review: The response

The NSW Minister for Innovation and Better Regulation has announced a major review of the NSW CTP Green Slip Scheme aimed at creating a fairer and more affordable system for road users.

New South Wales is one of the states/territories in Australia where people have the power to choose their Green Slip/CTP provider. Nevertheless the state government is concerned about rising costs of the compulsory cover, with Minister for Innovation and Better Regulation Victor Dominello stating that most motorists in NSW are now paying around $600 or more for their green slip, a premium increase of approximately 70 per cent since 2008.

“Over the past decade only 45 cents in every premium dollar has been returned in benefits to injured road users, with the rest going towards scheme costs and providers,” he said.

“The scheme has become inefficient and unsustainable. The NSW Government is committed to working in consultation with insurers, lawyers, medical professionals and other stakeholders to deliver a better scheme for NSW road users.”

The NSW Government has published an options paper to facilitate public consultations, with the review focusing on four key objectives:

  • Increasing the proportion of benefits provided to the most seriously injured road users;
  • Reducing the time it takes to resolve a claim;
  • Reducing opportunities for claims fraud and exaggeration; and
  • Reducing the cost of green slip premiums

The options paper and insurer profit review are available at www.sira.nsw.gov.au/CTP-reforms

Industry response to CTP (Green Slip) reform

A number of insurers and industry bodies have been quick to comment on the consultation, as follows:

Insurance Council of Australia (ICA)

The Insurance Council of Australia has welcomed the CTP discussion paper.

ICA CEO Rob Whelan said CTP reform was a highly complex matter requiring extensive consultation between the NSW Government, insurers and other stakeholders

“Any changes to the scheme must support the needs of motorists and injured people, reduce costs and promote insurer competition to keep premiums down,” Mr Whelan said.

“The ICA and its members look forward to contributing to the discussion around CTP reform, and findings ways to make the scheme fairer, more affordable and more sustainable for the years ahead.”

Law Society of NSW

The Law Society of NSW has cautiously welcomed the release of the discussion paper, with the President of the Law Society of NSW, Gary Ulman, saying that lawyers support an efficient, affordable and sustainable scheme that delivers fair compensation to victims of motor accidents.

“The Law Society of NSW also supports the rights of motor accident victims to access legal advice and representation,” Mr Ulman said.

“We are currently considering in detail the NSW Government’s options paper for reforming the CTP scheme.”


One the insurers currently providing Green Slip cover in NSW, Suncorp, has welcomed the NSW Government’s decision to reform the Compulsory Third Party (CTP) insurance scheme.

Mr Anthony Day, CEO Suncorp Insurance Australia, said structural reform was required to give motorists a better deal, reduce fraud and provide cover for everyone injured in a motor vehicle accident.

“The current scheme is inefficient, with around 45 cents in every dollar of premium ending up in the pockets of injured people,” said Mr Day.

“Large lump-sums are paid out for minor injuries, which is unfair and encourages fraudulent claims that drive up the cost of premiums.

“The introduction of defined benefits would significantly improve efficiency and enable a move to a fully ‘no-fault’ scheme, meaning everyone who is injured on the road gets the care and support they need.

“Motorists in other states have the security provided by a fully no-fault scheme, and we now have an opportunity to bring those benefits to the people of NSW,” said Mr Day.


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