CTP reforms: Motorist cash bonanza as NSW Government announces refunds under revamped scheme
MORE than four million NSW motorists are set to pocket cash refunds of up to $125 after a major shake-up — and insurance premiums will fall by hundreds of dollars.
NSW
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MORE than four million NSW motorists are set to pocket cash refunds of up to $125 after a major shake-up of the state’s expensive compulsory car insurance scheme — and premiums will also be slashed by hundreds of dollars.
The Berejiklian government’s new low-cost compulsory third party Green Slip scheme comes into effect on December 1, meaning people who already renewed their policies this year may have paid too much.
A crackdown on fraudsters and excess profits by insurers has created a $300 million windfall, to be returned to eligible motorists next year.
Taxi drivers will also be also big winners, with some city cabbies receiving up to $2125.
NSW motorists pay the highest compulsory third party (CTP) insurance in Australia with the average metropolitan premium around $710. This will drop to $554 after December 1.
Finance Ministery Victor Dominello said people who paid for their green slip closer to December would get the most money back.
He said a city motorist who renewed their CTP insurance in November would receive $125, someone who renewed in September would get $103 back and a June renewal would fetch a $77 refund. A regional motorist who renewed their green slip in November would get $42 back.
All up, $40 million will be returned to country drivers.
“It means they will get a partial refund on what they paid in 2017.”
“We would much rather use the surplus to fill the pockets of motorists than the pockets of insurers,” he said.
“We promised to deliver a fairer CTP scheme and that is why we are refunding $300 million.”
The refunds will be delivered electronically, and in some special cases by cheque, next year with the state government understood to be yet to determine the timing.
The government will fund an advertising campaign advising motorists eligible for the refund how to access it.
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Over the past decade, green slip prices have increased by 85 per cent in Sydney, with the average Sydney motorist now paying $710, and country motorists paying $481, due to a significant spike in minor injury claims and related costs, insurer profits and fraud.
“It’s double good news because, for the overwhelming majority of motorists, it means they will get a partial refund on what they paid in 2017 and a cheaper premium in 2018,” Mr Dominello said.
On average, premiums will drop by $120 across the state, with country drivers having their average premium cut from an average $481 to $423.
The refunds don’t stretch beyond anyone who renewed before December 2016.