The latest reports from the NSW Bar Association show that only 2% of nearly $1 billion in CTP Premiums has been paid to injured Australians in the first 8 months of the revised Compulsory Third Party (CTP) scheme. This minimal payout is worrying and begs the question – who is really benefiting here?
The Motor Accidents Injuries Bill was passed by the NSW Parliament on 30 March 2017 and the new CTP scheme commenced on 1 December 2017. The new CTP Green Slip* was introduced, in large part, as a means to improve support for those injured on NSW roads and to reduce the costs of CTP Green Slips to vehicle owners.
But has this actually happened?
Bar Association president Arthur Moses states, “While it’s true there has been a reduction in premiums, the majority of the money saved is going to the insurers rather than providing compensation for the injured”.
The Bar Association has now called for an independent review to be undertaken by a retired judge, rather than the government's own employee insurer, iCare, to ensure the CTP is actually focused on compensating injured parties in motor vehicle accidents – and not making more profits for insurers.
We all agree that the old CTP scheme was causing issues between lawyers and insurers, and resulting in a higher premium cost for motorists and a reform was needed. However, Paramount Law support the Bar Associations request for a review if there is doubt that the current reform is living up to its promises.
When injuries are sustained in a motor accident, the highest priority should be ensuring the injured party is awarded the compensation they are entitled to as swifty and painlessly as possible. Bureaucracy and profit should not be allowed to get in the way of that happening.
If you or a loved one has been injured in a motor vehicle accident and are struggling to receive the compensation you believe you are entitled to, contact our team at Paramount Law today.
*A ‘greenslip’ is an insurance policy, legally required for all motor vehicles registered in NSW, which provides compensation for people killed or injured in a motor vehicle accident.