Can I get a CTP refund following recent NSW reforms?
Published 09 May 2018
The new compulsory third-party (CTP) green slip insurance reforms came into force on December 1 last year. Changes to the system were brought in to ensure seriously injured motorists received the compensation they were owed more quickly, according to the NSW government.
Under the new scheme, CTP green slip prices were lowered across a number of vehicle classes. This was welcome news for many drivers, but it means some people who bought their insurance before the changes were introduced may have paid pre-reform prices on their policies.
If you are one of these motorists, you can claim a refund on the amount you have overpaid. The State Insurance Regulatory Authority (SIRA) has published instructions on how to proceed with a claim, which we've summarised below.
Who is eligible for the refund?
Most vehicle owners who purchased or renewed green slip insurance with a start date before December 1 will be eligible for a refund. Individuals who are not entitled to a refund include:
- Motorcyclists (because green slip reductions did not affect them);
- Vehicle owners whose refund amount does not meet the minimum amount of $10 before or after an administration charge;
- People who purchased their vehicle after November 30.
SIRA states the majority of refunds will be worth between $10 and $120, with motorists typically receiving a higher amount the closer their insurance was purchased to the December 1 reform date.
The refund is calculated as the difference between the old and the new scheme price on a pro rata basis. Any money owed will be paid through a bank transfer, so you will need to submit your bank's BSB number and your account details when you seek the refund.
How do I make my claim?
Contact Service NSW to check your eligibility and begin the process of receiving a refund. You can also get in touch with a Service NSW representative over the phone between 7am and 7pm Monday to Friday, as well as visit in-store locations across the state.
However, motorists have a deadline to meet - all refunds must be claimed by September 30 2018. All unclaimed refunds will go towards reducing the medical services levy next year, ensuring other motorists still benefit from the money even if policyholders forget to claim.
The levy was first introduced alongside the state's Lifetime Care and Support Scheme, which helps injured motorists receive financial help to cover medical bills.
If you would like to learn more about compensation and financial redress for car accident injuries in NSW, please contact Gerard Malouf & Partners Compensation, Medical Negligence & Will Dispute Lawyers.