Victor Dominello: Motorists to get fairer deal on green slips
FINANCE Minister Victor Dominello has vowed to cut into insurers’ profits on green slips, which have risen 10 per cent in a year to an average price of $702.
NSW
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GREEN slips have risen 10 per cent this year to an average $702, with Finance Minister Victor Dominello vowing to push ahead with reforms that will cut prices.
The reforms will also eat into insurers’ profits and Mr Dominello yesterday echoed former Labor minister John Della Bosca in saying reforming compulsory third party insurance was “like the first 30 seconds of Saving Private Ryan”.
But Mr Dominello said he was determined to press on, otherwise green slip bills would continue to rise.
In the December 2016 quarter, the average premium paid by Sydney passenger vehicle owners was $702 — an annual increase of $65 or 10.2 per cent. The average premium paid by regional car owners was $482, an annual increase of $29 or 6.4 per cent.
“Our reforms will bring an end to insurer super profits by handing those profits back to motorists through reduced premiums,” Mr Dominello said.
“John Della Bosca was right when he said reforming CTP is like the first 30 minutes of Saving Private Ryan.
“Change is long overdue and we are absolutely committed to delivering on our promise to create a fairer and more affordable scheme for motorists.”
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The number of accident claims in the latest quarter was 2210, the highest since the current scheme began in 1999.
The government said fraud contributed $75 to every green slip and that, without reform, premiums would increase between 10 per cent and 20 per cent in the next few years.
Only 45 cents in every dollar spent on a green slip goes to injured road users, with the rest going to lawyers and insurers through scheme costs.
Since the current NSW CTP scheme was introduced, insurance companies have made an average profit margin of about 20 per cent. Mr Mr Dominello is determined to reduce that to 8 per cent.
“Sydney motorists have been slapped with a 10 per cent premium increase over the past 12 months. This is an unfair burden and justifies the need for immediate reform,” he said.
“Our reforms will reduce green slip premiums for motorists, weed out fraudsters and eliminate insurer ‘super profits’.”
Many lawyers have railed against the changes, which have so far included the introduction of a no-fault scheme and set payments for minor injuries.
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