GOVERNMENT REJECTS LABOR’S CALL FOR INDEPENDENT UMPIRE TO REDUCE GREEN SLIP PREMIUMS
The Berejiklian Government has rejected Labor’s call for an independent “cop on the beat” to ensure big insurers pass on premium savings to NSW motorists as a result of the overhaul of the CTP scheme.
The Government established the Fire and Emergency Service Levy Monitor to ensure householders received the savings from lower premiums as a result of the universal tax and yet there will be no such figure to look after motorists.
Labor argued that the $3 billion CTP industry dwarfed the emergency services budget of $1 billion, and needed independent oversight to ensure cheaper green slips became a reality.
Labor flagged a number of amendments when responding to the Government’s Motor Accidents Injury Bill 2017, which passed today.
The Government only admitted last year that the super profits of insurers were a big problem when it came to the rising costs of green slips.
Historically the insurers have made 19 per cent profit on green slips – almost 20 cents of every premium dollar paid goes to the big insurers as pure profit, on top of their expenses.
After three years the system by which insurer super profits are monitored and returned as reduced premiums will be reviewed, meaning there is no certainty that profit gouging will cease.
Labor said it would closely observe changes to the CTP scheme to ensure innocent victims were not worse off. It would also monitor the impact that bringing 7,000 at fault drivers into the scheme will have on premiums.
Quotes attributable to Shadow Minister for Innovation and Better Regulation, Yasmin Catley
“NSW families are struggling with the cost of living under this Government and Labor wants to see these changes reduce the cost of green slips by more than $100 per year.
“People don’t trust insurance companies to reduce green slips off their own back – and they doubt the ability and willingness of the Berejiklian Government to hold them to account.
“That is why we moved amendments to have an independent monitor ensuring that cheaper CTP insurance is actually delivered.
“These are massive changes and we need a cop on the beat - someone with the calibre of Professor Alan Fels - to ensure the changes are implemented fairly and smoothly and premiums go down for NSW motorists.”