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CTP Insurance in NSW: What were the changes and how have they affected drivers?

In 2017, the NSW Government reformed the CTP Green Slip scheme. The changes were intended to reduce the cost of green slips and to extend six months of income replacement to all road users. For the first time, this included at-fault drivers.

The government claimed it would pay for this by limiting insurer’s profits, cutting false or exaggerated claims and putting a six-month limit on income support for “less-than-severe” injuries.

After an outcry from lawyer’s groups, the government were forced to backpedal on some of the more drastic aspects of the reform.

If you’re having difficulty claiming what you’re entitled to from your insurance company, Shine Lawyers can help.

What is CTP Insurance?

Compulsory Third Party (CTP) insurance provides compensation for people who are injured or killed when your vehicle is involved in an accident. It protects the driver of the vehicle that caused the accident from being financially responsible for the compensation.

CTP insurance only covers personal injury. It does not cover vehicle damage, property damage or theft.

CTP insurance is compulsory in Australia.

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What has changed?

The package introduced in 2017 changed the payment scheme around CTP to a mixture of lump sums and defined benefits.

The scheme changed the rules around CTP to protect (for the first time) drivers who were at fault. They were able to access defined benefits but not lump sums.

Before the scheme was introduced, 45 cents in every Green Slip dollar was returned to the injured. The reforms aimed to make it 65 cents in every dollar.

Persons with “low severity” injuries below what is considered 10 per cent impairment now will not have benefits paid after more than five years or benefits paid beyond two.

How have drivers been affected?

After a horrific car accident involving a collision with a prime mover, Tony Webb spent a decade seeking compensation from Allianz for his permanent injuries.

Allianz claimed he was “embellishing” his injuries for personal gain.

The six-month limit for certain injuries has meant that some injured persons who were unable to return to work after their accidents have nevertheless still lost out on financial compensation.

A partial refund was offered to people who purchased their Green Slip with a start date before the first of December:

How can Shine Lawyers help?

If you’ve been negatively impacted by the CTPs changes or are having difficulty getting proper assistance from your insurance company, Shine Lawyers can help. Get in touch today and our expert motor vehicle insurance lawyers can help you claim what you’re entitled to:

Written by Shine Lawyers. Last modified: September 24, 2018.

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