NSW politics: Green Slips to be cut by $100

EXCLUSIVE: Motorists will reap a windfall from the state government with Premier Gladys Berejiklian today unveiling a reform plan to cut Green Slip bills by more than $100.

Premier Gladys Berejiklian.

• Insurers pocket 20 cents of every dollar as premiums soar
• Minister pledges to cut average costs from $643 to $500 a year

MOTORISTS will reap a windfall from the state government with Premier Gladys Berejiklian unveiling a reform plan to cut Green Slip bills by more than $100.

The reforms will mirror the O’Farrell government’s WorkCover reforms in changing a system of lump sum payments into more weekly payments.

The Premier will also bring another major and long-awaited reform involving the insurance industry to the party room when she is set to introduce an Emergency Services Levy to allow the cost of funding firefighters and SES to come off council rates, instead of insurance bills.

Premier Gladys Berejiklian has outlined a new reform plan that will cut the price of Green Slips by $100.

The government claims this will lead to a reduction in costs to the taxpayer.

Under the new Green Slip system, those who suffer from whiplash and “minor psychological injuries” will only be able to access benefits for six months.

The reforms will also rub out the chances for people with serious injuries to claim for longer than two years for loss of earnings.

Lump sum compensation will be retained for those with long-term injuries.

The Green Slip reforms will also enhance the power of the State Insurance Regulatory Authority to tackle fraud and “monitor and regulate” insurer profits, which have averaged about 20 per cent since 1999.

Finance Minister Victor Dominello has made the point that the average Sydney motorist now pays $703 a year for their Green Slip and over the past decade Green Slip prices have increased by 85 per cent and, without reforms, will continue to rise.

The reforms also aim to reduce taxi premiums by about $3000 from their current level of $7500.

Mr Dominello has pushed for the reforms because the current scheme delivers only 45c in every Green Slip dollar to injured road users, with the rest paying for scheme costs, including legal expenses, insurer profits and medical fees.

Under the scheme, the government will introduce a “safety net allowing all injured road users to access benefits for loss of income and medical expenses for up to six months, with lump sum compensation retained for those with long-term injuries”.

Victor Dominello says the price of a Green Slip has risen by 85 per cent over the past decade.

Previously the scheme has been only for people who are not at fault. Under the change to the scheme, benefits will be ceased at six months for those who are at fault.

Ms Berejiklian and Mr Dominello will take details of the legislation to the Coalition party room today.

A bill will be introduced to Parliament this week and, subject to Parliament’s approval, the new CTP scheme will likely commence in December.