Compulsory Third Party Insurance (CTP), also known as a CTP Green Slip, is mandatory in NSW and must be purchased before you can register your car.
It covers your liability, and the liability of anyone else who drives your car, for injuries caused to others in a motor vehicle accident.
The premiums collected for CTP Green Slips help people injured on our roads to receive the financial support and rehabilitation services they need to recover quickly.
What’s the reason for the change?
When announcing the proposed changes to CTP Green Slips in March 2016, the NSW Government reported that:
- NSW had some of the highest premiums in Australia and without reform, prices would continue to rise
- A person injured in a motor vehicle accident often waits between three to five years for their claim to be resolved
- Only 45 cents in every CTP Green Slip dollar collected by insurers goes to injured people. The rest goes towards scheme costs, legal costs and insurer profits, and
- Fraudulent claims were estimated to add around $75 to the cost of each CTP Green Slip
From 1 December 2017, people injured on our roads will be better supported through improvements made to CTP Green Slips by the NSW Government.
The changes impact all NSW drivers, regardless of their insurer.
Some of the key changes include:
- Reducing the time it takes for injured road users to receive benefits and resolve claims
- Helping people injured on our roads to rehabilitate faster, through easier access to recovery services
- Minimising opportunities for claims fraud and exaggeration, and
- Saving you money on CTP Green Slip premiums
People injured on our roads from 1 December 2017 will get up to six months of benefits including:
- Weekly income payments (if time off work is required to recover)
- Medical and treatment expenses, and
- Commercial attendant care (for help needed around the home)
You’ll also see improvements to the claims process, for example, all injured people will have access to treatment and wage loss support for up to six months regardless of fault, and those not at fault with serious injuries will have ongoing care and support after six months to help them recover.
What does this mean for you?
If you own a car, you’ll see a reduction in the cost of your CTP Green Slip from 1 December 2017.
If you purchased a CTP Green Slip prior to 1 December 2017 and missed out on these savings, you may be eligible for a refund.
All customers eligible for refunds will be notified by the State Insurance Regulatory Authority (SIRA), and most eligible customers will start to receive their refunds from early 2018.
Want more information?
If you’d like more information on the NSW Government reform to CTP Green Slips, you can visit the SIRA website.
Interested in NRMA CTP Green Slip? It’s easy to get a quote online.