Profits insurance companies can make out of green slips will be slashed under a proposal announced recently by the NSW Government.
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The changes will address problems with the current CTP scheme such as premium unaffordability, delays in payment of benefits to people injured on NSW roads, and reducing fraudulent and exaggerated claims that are driving up premiums.
Member for Cootamundra, Katrina Hodgkinson said under the scheme, state-wide average premiums will drop from $650 to $528.
"Over the past decade, Green Slip prices have increased by 85 percent, with the average country motorist paying $482," she said.
"The current scheme has become the least affordable in the country and just 45 cents in every Green Slip dollar is returned to those who need it most - injured road users. The rest is chewed up in scheme costs, including insurance super profits, legal fees and medical fees.
"The changes will not only stop the ongoing increases in average premiums, they will stop insurer super profits and actually reduce the cost of Green Slips for NSW motorists. This will provide a significant household saving to families in the Cootamundra electorate who often need to insure multiple vehicles every year."
Insurance Council of Australia chief executive Rob Whelan said they support the proposed changes.
"The current scheme was under stress and needs to be renewed," he said.
"We hear that quite a lot about the super profits made by insurance companies, but it's about the volatility of the scheme, which is very unpredictable.
"Some of the claims that we've had to deal with go on for many years, we are not sure what the outcomes might be, so profitably might move around."