The Motor Accident Injuries Bill 2017 passed NSW Parliament at the end of March. It will start operation from 1 December 2017 and is the first big step towards effective reform of the NSW CTP scheme.
The new Act will provide a new safety net for all injured road users, whether at fault or not. For 6 months, they will receive benefits to cover loss of income and the cost of medical treatment and care. Those with more serious injuries will be able to make claims for lump sum compensation.
Victor Dominello, Minister for Finance, Services and Property, expects these changes to dramatically reduce the cost of NSW premiums from around $700 to $520 for Sydney drivers. Country drivers currently pay $480 and will see a reduction of about $50.
Taxi drivers, whose annual premiums are disproportionately high compared to other vehicle owners, will also see a big drop of up to $3,000 per year.
The main purposes of the reform are to cut the price of green slip premiums, stop insurers making excessive profits, and deter people with minor injuries from making fraudulent claims.
This bill is the first step in reform. The second step is for State Insurance Regulatory Authority (regulator of the scheme) to work with industry stakeholders to develop guidelines and regulations for the scheme. Guidelines and regulations set out the exact details of how the Act will be carried out.