GREEN slip insurance could become cheaper, while claims for drivers injured in motor vehicle accidents, including those at fault, could be processed much quicker if state government reform is passed later this year according to Dominic Perrottet.
The Member for Hawkesbury and Minister for Finance, Services and Property said the government was planning to introduce a bill to parliament later this year to change compulsory third party insurance is handled.
Former Labor MP John Della Bosca is leading a panel, which will provide advice on the final details of the reform.
Currently, to register a car in NSW, a person must have CTP insurance, otherwise known as a green slip, which covers injury to other drivers or passengers in another car, in the event of an accident.
Mr Perrottet said the government was proposing a system called a no-fault scheme, where people injured in minor accidents would receive a set amount of money, including the at fault driver.
He said the system would allow for faster claims and potentially lower insurance costs, which he said were among the highest in the country.
“When people are in accidents and they need care and support, it is not good for them to be waiting a significant amount of time for them to claim it,” he said.
Mr Perrottet said one of the problems was minor accidents often ended up in court, to determine who was at fault.
He said there were also people who exaggerated the extent of their injuries, to receive a larger compensation pay out.
“The view is there has been a significant increase of fraud in the system, we estimate the cost of that fraud at $75 [of the price of CTP insurance],” he said.
“At the moment you go to court to find out who is at fault in the accident.
“[Under our scheme] you're covered whether you're at fault or not, and here is the fee you are entitled to.”
Mr Perrottet said people injured in an accident would receive a medical assessment, and then have receive a score called a whole person impairment.
That score would determine how much money a person with a minor injury would receive, while more extensive injuries such as back surgery or prosthetics would still receive compensation in the traditional way.
“What we're saying is that if you have a whole person impairment of less than 10 per cent you can't seek damages,” he said.
“It is minor injuries, which as a result get into the litigation system that hold the whole thing up.”
Mr Perrottet said as he understood it, currently, only 45 cents in the dollar of CTP insurance went to covering injuries, and under the government’s proposed scheme that would rise to 60 cents.
The reform is not guaranteed to pass through, however, because the government does not control the Legislative Council and would need to secure two votes from the minor parties if Labor does not support the bill.
Labor Member for Londonderry Prue Car, also shadow Minister for Skills and shadow Assistant Minister for Education, said she would have to wait and see what the exact details of the proposal were, but was certainly not opposed to reducing the cost of CTP insurance.
"It is very light on detail and we await the details of the legislation, but we do seriously need to be looking at moves to bring down the price of insurance,” she said.
“We're definitely open to supporting anything which brings down the cost of insurance.
“While we want to see moves to bring down the cost of premiums, we need to make sure people injured in motor vehicle accidents don't get left behind.”
