Compulsory Third Party Insurance

Hansard ID: HANSARD-1323879322-98762

Hansard session: Fifty-Sixth Parliament, First Session (56-1)

Compulsory Third Party Insurance

Mr MARK COURE (Oatley) (15:27:54):

My question is addressed to the Minister for Finance, Services and Property. How much can motorists in my electorate of Oatley expect to save off their premiums as a result of the Government's compulsory third party insurance reforms?

Mr VICTOR DOMINELLO (Ryde—Minister for Finance, Services and Property) (15:28:36):

A lot of people in this Chamber and, in fact, across New South Wales want to know what the reduction in their premium will be by the end of the year when the reforms really kick in on 1 December. The New South Wales Government understands that the costs of green slips place a strain on household budgets.

Each year motorists across the State experience bill shock when they renew their green slip insurance because premiums have risen an incredible 85 per cent in Sydney over the past decade. This makes compulsory third party [CTP] premiums in New South Wales among the highest in the country, mainly due to a significant spike in minor injury claims, insurer super-profits, and fraud. Without reform, green slips in New South Wales were expected to continue to rise to an eye-watering average of $708 per premium. The average household has two cars, therefore it would not be unusual for them to be paying green slip premiums totalling $1,400 per year.

The New South Wales Council of Social Service, which works with and for people experiencing poverty and disadvantage, puts it simply: "There is a fundamental need to reform the CTP scheme to make it more affordable." As I have said in this House before, more than half a million motorists are starting to see a reduction in their premiums even before the start date of the new scheme on 1 December. That is because of the outstanding work done by the people in the NSW Police Force in reducing fraud and bringing fraudsters to justice. I will have more to say about that in the months ahead.

Once this new scheme begins, motorists will receive an average premium reduction of $120 per policy, as well as a reduction in taxi premiums of up to 40 per cent. For an average family in the electorate of Oatley, for example, these premium savings could be more than $300 per family per year. That is real money that the New South Wales Government is putting back into the pockets of families to help ease cost-of-living pressures. The Berejiklian-Barilaro Government understands that the cost of living is an issue. There are so many individuals and families across our great State struggling to keep up with the cost of living. These savings will help the hip pocket and allow motorists to spend more money where it matters most.

I have some good news for members of this House. We will deliver savings to motorists in every electorate in our State. I will give a few examples. Average premiums for Sydney motorists will be slashed. I am sure the following members would like to know what the average savings for motorists in their electorates will be. The member for Holsworthy would be interested in the reductions in her electorate. The member for East Hills would be interested because his constituents would want to know what their reduction will be, as would the constituents of the member for Coogee and the member for Heathcote. All the motorists in these electorates will save around $156 per year. That is a reduction of 22 per cent. The good news is not confined to the inner city; it also applies to outer Sydney motorists. For example, motorists in the electorates of Hawkesbury, Wollondilly, Camden and Penrith will receive premium reductions of the order of $163 per year. That is a 29 per cent reduction in premiums.

Ms Jodi McKay:

How about Strathfield?

Mr VICTOR DOMINELLO:

Strathfield is in the inner city. Those constituents will have reductions of about $156 on average. I know that the member for Strathfield will be very happy. That is good news for the motorists in Strathfield.

The SPEAKER:

Order! The member for Strathfield will come to order.

Mr VICTOR DOMINELLO:Extension of time

Motorists across Newcastle—in areas such as Terrigal, Gosford, The Entrance, Swansea, and Charleston—will see their premiums reduced by about $112, which is a saving of about 24 per cent. Wollongong motorists—those in the electorates of Keira and Shellharbour—will not be left out. Their premiums will reduce on average by $128, or a 23 per cent saving. Finally, country drivers will also save, including those in Griffith, Murray, Monaro, Cootamundra, Lismore, Bega, Barwon, Ballina, Myall Lakes, Tweed Heads and Albury. Country drivers should expect their premiums to be slashed by $58, or 12 per cent. []

The SPEAKER:

Order! The Minister has the call and will be heard in silence.

Mr VICTOR DOMINELLO:

Country drivers will also benefit from greater protections given to drivers involved in single-vehicle accidents—a big issue in the bush. So these reforms not only reduce premiums significantly but also provide greater protections for those in most need. The savings and benefits will also extend to taxidrivers, who currently pay a whopping $8,000 on average for their green slips. But under the State Government's reforms, Sydney taxidrivers will save more than $3,000—about 40 per cent—bringing much‑needed relief.

The new scheme delivers on the elusive trifecta: It improves important benefits for those injured on our roads; it significantly reduces the cost of premiums for motorists and taxi owners alike; and it will see the end of insurer super-profits. The premium savings that will be delivered through the reform of the New South Wales CTP scheme are proof of this Government's commitment to reducing the cost of living for motorists and families across New South Wales.