After a horror run through much of the ’90s, when CTP premiums spiralled out of control, NSW motorists should all be smiling now. They’re getting cheaper green slips than they were three years ago, according to the Motor Accidents Authority.

Following the October 1999 green slip reform package, premium rates have been declining annually. Before the reforms were introduced the average cost of a green slip for a car in the Sydney metro area was around $430. During the March 2002 quarter the average premium was $344.

ICA Executive Director Alan Mason said the MAA figures are an “excellent example” of how government reform to control insurance claims costs resulted in lower premiums for the community.

“Since the 1999 reforms, insurers have been directing their efforts, and the premium funds, towards those who need it most – people with the most severe injuries.” He said.

It’s a “strong example” of how the insurance industry can work effectively with governments to achieve a result that “still protects people with serious injuries but improves the operation of the compensation scheme and provides cost savings for policyholders”, Mr Mason said.

He said the challenge is to achieve a similar outcome for public liability insurance.