Green Slip Changes Likely To End In Higher Fees
Government changes to the Compulsory Third Party insurance scheme is likely to end up with motorists paying even more for green slips when registering a vehicle.
The government says its changes will cut the cost of the average annual green slip by $50 to $75.
But a close examination of details released by the government reveals the opposite is likely to happen because the changes will increase the number of claimants by as much as 50 per cent – many more than the government has estimated. Governments are not very good at estimating numbers in new schemes – one only has to look at the cross city tunnel debacle.
Maurie Stack OAM, chairman of Stacks Law Firm and former president of the Law Society, said the new rules change compensation to a no-fault basis.
“This means for the first time the negligent driver who caused the accident will be entitled to the same level of compensation as their innocent victims,” Mr Stack said.
“Is it fair that a child walking across the road on a marked pedestrian crossing should have their rights decimated in order to make equal provision in compensation for the driver who hits them while speeding and sending a text message?”
This adds a whole new group of people involved in accidents who will suddenly be entitled to compensation. Ironically, this will be the negligent drivers who cause the accident in the first place.
This must significantly push up the cost of premiums because of the increased number of claimants. It may take a bit of time, but the increase is inevitable.
Price rises have already been built into the new scheme regulations. Insurers have reserved the right during transitional period of three years to adjust the premium if the new scheme proves more costly than expected.
“The promised reduction in premiums is illusory and not the real reason for the changes. The real reason is the politically correct no-fault approach by the government which is unfair on innocent victims of negligent drivers.”
“The changes slash the level of benefits available for 90 per cent of injured people for loss of income, and they will be cut off entirely after five years,” Mr Stack said.
“People will have to spend huge amounts of their own money to take out income protection insurance, something that already exists in the current CTP scheme.”