Nearly one year after the NSW compulsory third party (CTP) scheme was overhauled, the State Insurance Regulatory Authority (SIRA) has released figures detailing the amount that has been paid out to those injured on the road. Unfortunately, it's not what was expected, leaving road users and officials concerned about further projections.
What was wrong with the old scheme?
In NSW, every road user must buy compulsory third party (CTP) insurance – otherwise known as a greenslip insurance policy. This provides compensation for people injured or killed on roads. Prior to the December 2017 reform, the scheme had been in operation for 18 years. Here, an injured person had to wait, on average, between three and five years after a motor accident to receive compensation. Furthermore, a large percentage of the total premiums collected was spent on other areas, rather than injured people.
Thankfully, when the reform came into play, CTP green slip prices were lowered across a number of vehicle classes. Better yet, drivers who had sustained serious injuries as a result of motor vehicle accidents were set to receive an average of 26 per cent more in money collected as benefits.
However, the SIRA's recent report has revealed that these pay outs have fallen short of original projections, sparking concerns that the reforms aren't delivering as promised.
What did the report reveal?
When making its projections back in December 2017, the SIRA estimated that they would pay out around $130 million to injured road users within the first 10 months. However, figures from its latest report fall short of original estimations by around $80 million.
Speaking to The Sydney Morning Herald, a SIRA spokesperson said that payouts were double what was paid out last year under the old scheme. The shortfall was blamed on a delay in the lodgement of claims that came when implementing the new scheme.
However, not everyone has taken the news so lightly. In response, Greens MP David Shoebridge thinks there's a big issue with the statutory benefits and their drastic underpayments.
"The regulator, SIRA, has a lot to answer for. They have utterly failed to inform motorists of the new no-fault benefits that are available."
He emphasised that lawyers must inform claimants of their entitlements so they're aware of what they may or may not receive.
If you've been injured in a motor vehicle accident and are wondering what compensation you could be entitled to, get in touch with the team at Gerard Malouf & Partners today.