Insurers that supply compulsory third party (CTP) cover in NSW will have real-time access to Roads and Maritime Services vehicle registration data under plans to improve quoting processes and prevent fraud.

Insurance Council of Australia (ICA) spokesman Campbell Fuller says the technical change will allow insurers to give prices based on current information.

ICA rejects any privacy concerns over the move.

“This is simply part and parcel of being able to provide CTP insurance quotes under the NSW Government system,” Mr Fuller told insuranceNEWS.com.au.

NSW greenslips are provided by government-licensed insurers that follow Motor Accident Authority guidelines to determine premiums.

Transport for NSW says the changes let Roads and Maritime Services give up-to-date vehicle registration and limited suburb and postcode information – but only if the customer consents to the insurer accessing the data.

The Government says the details provided do not include odometer readings, and the Privacy Commissioner was consulted about the change.

“This is aimed at stopping fraudulent CTP applications, such as claiming a country garaging address for a vehicle that is kept at a city address,” a spokesman told insuranceNEWS.com.au.

“Fraudulent insurance applications cost insurers millions of dollars a year and drive up the cost of premiums for all motorists.”

NSW Council for Civil Liberties President Stephen Blanks says it is crucial permission is obtained when use of data is extended.

“One of the important principles of data collection is that people know exactly for what purpose the data is collected and, once collected, that purpose shouldn’t be able to be expanded without consent,” he said.