DRIV­ERS IN $300M CTP SLIP WIND­FALL

The Daily Telegraph (Sydney) - - Front Page - CLARISSA BYE

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 Min­is­ter 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.

“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 de­liver- ed 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.

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.

Vic­tor Dominello.

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