Compulsory Third Party Insurance Reform - Point to Point Transport

22 August 2016 | NSW Taxi Council

On 19 August 2016, the Upper House committee on Law and Justice tabled a report reviewing the state’s Compulsory Third Party (CTP) ‘Green Slip’ insurance scheme. The committee has had an oversight role in relation to the operations of the scheme for the past 17 years. It previously conducted this role by reviewing the implementation of the scheme by the former Motor Accidents Authority (MAA). Following legislative reforms to the state’s insurance and compensation schemes in 2015, the MAA was abolished and its role assumed by a newly established organisation – the State Insurance Regulatory Authority (SIRA). This is the committee’s first review of the scheme since those changes.

Committee Chair, the Hon Shayne Mallard, stated: “A major theme in the review was the emerging trend of fraud, exaggeration and claims harvesting, which has resulted in a significant increase in minor severity injury claims with legal representation. These include nervous shock claims for child accident victims and have contributed to the rising cost of Green Slips. However we are pleased to see that the government is endeavouring to address these issues through a range of measures, including the establishment of a CTP fraud task force.”

Mr Mallard added: “Other emerging issues which have had implications for the scheme include the advent of ride-sharing operations such as Uber, and the impact of the 2012 changes to the New South Wales workers compensation scheme. The committee has made a number of recommendations to address these issues.”

“At the commencement of this review the New South Wales Government had already announced a major review of the scheme, aimed at creating a fairer and more affordable system for road users. The government released significant reform plans for the scheme in June and we look forward to monitoring the progress of those reforms in our next review”, Mr Mallard said. The committee thanks all stakeholders who participated in the review for their valuable contribution.

For further information about the review please visit the committee’s website: www.parliament.nsw.gov.au/lawandjustice

First review of the Compulsory Third Party insurance scheme

First review of the Compulsory Third Party insurance scheme - summary of recommendations 

NSW Government - Better Regulation Stakeholder Engagement Strategy


 

On 4 July 2016, NSW Government announced proposed changes to CTP Insurance arrangements for the point to point transport sector.

Minister for Innovation and Better Regulation: NSW Motorists to Benefit From CTP Reforms

State Insurance Regulatory Authority (SIRA): Review of CTP Green Slip Insurance For Point to Point Transport Vehicles

ABC News segment: CTP reform for point to point transport  

ABC News online: Point to point transport providers to have insurance premiums calculated using GPS data


In March 2016, the NSW Government announced the release of an options paper on reforms to Compulsory Third Party (CTP) Insurance for the point to point transport sector, including taxis. 

Statement, 10 March 2016 - NSW Taxi Council welcomes Government action on CTP insurance

NSW State Insurance Regulatory Authority (SIRA) Options Paper 

Letter from SIRA to NSW Taxi Council CEO Regarding CTP Taxi Premiums - 8 June 2016

This Options Paper was released in advance of the overall CTP reform process and was recognition of the critical importance of this issue in ensuring that there is a genuine level playing field for all point to point transport providers in this area. The Options Paper clearly identifies that reform to the CTPI scheme for point to point transport providers must be sustainable and achieve a level playing field for all providers. 

The NSW Taxi Council also attended a Roundtable on CTP Insurance Reforms for the point to transport sector in late April. This roundtable – opened by the Minister for Innovation and Better Regulation, the Hon Victor Dominello – was attended by many stakeholders including point to point transport providers, the insurance industry and Government representatives. 

There was constructive discussion at the Roundtable on a range of issues consistent with the SIRA Discussion Paper. The NSW Taxi Council spoke in detail on the issues outlined in its submission. Whilst there is much more work to be done on coming up with a workable solution for all parties, there was agreement from all that a level playing field must be established to ensure that there is competitive neutrality between all point to point transport providers. Critical to this will be the transition to any new point to point transport CTP model, particularly for the NSW Taxi Industry. 

The Government has set a tight timeline to resolve this issue by mid-2016, which is supported by the NSW Taxi Council, as it is critical to the ongoing viability of the NSW Taxi Industry. 

NSW Taxi Council CTP Insurance Issues Paper Submission

NSW Taxi Council CTP Insurance Issues Paper - Supplementary Submission

State Insurance Regulatory Authority Point to Point Roundtable Presentation