A new CTP scheme that is fairer and more affordable means motorists are now paying $490 on average for their Green Slips – the most affordable since 2011.
Based on current premiums, for every 1% of excess profit recovered from insurers, more than $15 million will be returned to NSW vehicle owners through lower Green Slip prices.
The State Insurance Regulatory Authority (SIRA) will monitor insurer profits on a yearly basis and retrieve any proceeds when complex and serious injury claims are resolved.
NSW Minister for Customer Service Victor Dominello said insurer profits will be capped at 10% by SIRA, keeping costs to motorists down while also encouraging the industry to be more innovative.
“Under the old CTP scheme, insurer profits were in excess of 30 per cent and resulted in motorists paying some of the highest premiums in the country,” Mr Dominello said.
The new rules are already applicable.