CTP prices: How dodgy lawyers are costing you $75 a car with bodgy claims

YOU are paying an extra $75 a year for every car you own because about 12 law firms have been making shonky accident claims and driving up the price of compulsory third party insurance.

Police recover a car related to the CTP investigation from the Georges River in Lansvale in April, 2017 and seize it for forensic examination.

YOU are paying an extra $75 a year for every car you own because about 12 law firms are suspected by police of making shonky accident claims and driving up the price of compulsory third party insurance.

Over the past nine years there has been a “flood” of CTP claims from people for minor injuries — ranging from soft-tissue damage to post-traumatic stress disorder — supposedly suffered in insignificant accidents.

An Auburn lawyer is arrested by police earlier this year in relation to CTP fraud.

The state government said CTP fraud is costing every car owner an extra $75 a year.

Police Strike Force Ravens has now lifted the hood on the way the CTP system is rorted — and who is doing it.

Police said about 22 law firms are responsible for submitting half of the 6000 CTP claims made each year. About 12 of those firms are suspected of “embellished claims”.

An industry of compromised lawyers and allied health professionals has grown up around this fraud, signing off on the dodgy injury claims and taking their cut.

In one example, $10,000 was paid out to a nine-day-old baby, who was asleep during a minor car accident but supposedly suffered an “adjustment disorder” due to the crash.

Fraud investigators have been cracking down on CTP Green Slip insurance fraud.

Police recover a car from the Georges River related to the investigation into CTP fraud.

Embellished claims often start with very minor car accidents — such as a 5km/h nudge in a shopping centre car park.

In those situations, the claimant often visits a lawyer before seeking medical advice, sometimes weeks after the minor prang.

In some cases, lawyers were keeping more than half of their client’s CTP payout, with the average settlement for baseless claims about $60,000.

“Having a car accident is an unfortunate part of life but it shouldn’t be seen as a small lottery win,” NSW Fraud Squad Detective Chief Inspector David Christie said.

“The scheme is there to repatriate people who have suffered serious injury, who deserve to be looked after.

“But it’s not there for people who have dubious physical or psychological injuries because of a 50 cent car accident.”

Strike Force Ravens investigators (from left) Detective Seargent Andrew Gill and Detective Seargent Chief Inspector Dave Christey. Picture: Jane Dempster

Fraud investigators have taken a “top down” approach to smashing the widespread CTP scam, targeting the legal and medical professionals allowing the practice to occur.

“Law firms that are doing the right thing we are uninterested in,” Detective Sergeant Andrew Gill said.

“If you are going three weeks later to see a lawyer and the lawyer says ‘maybe you should see a doctor’ then maybe you shouldn’t be putting a claim in.

“And the problem for you is, if you do, we may be coming after you.”

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Strike Force Ravens has arrested 17 people this year, including an Auburn lawyer who was charged earlier this year for his alleged involvement in a $1 million CTP fraud racket.

A physiotherapist is also facing several fraud charges after he allegedly signed off on the “injuries” suffered by motorists.

Since the CTP crackdown began earlier this year, minor crash claims have been on a downward trend, Sergeant Gill said.