Compulsory third party insurance (CTP) reforms in NSW would bring lower premiums, the Insurance Council of Australia (ICA) told a roundtable at Parliament House last week.

But opponents argue the proposed shift to a no-fault scheme could cut benefits, increase the suffering of children and their families and fail to address insurers’ costs.

The State Government says CTP – or greenslip – reforms may cut 15% a year from premiums and give more money to the injured, rather than lawyers, insurers and investigators.

ICA CEO Rob Whelan says streamlining the scheme and reducing costs will push down prices, although the extent will not be known until claims can be estimated under the changes.

He says the proposed no-fault model is more viable and will help people recover faster.

“Protracted legal argument about who is at fault just frustrates that process,” he told Wednesday’s meeting. “We would argue that anything that streamlines the system and allows us to intervene and rehabilitate individuals faster, and brings those costs down, is actually a good thing and will have a better outcome.”

Other speakers argued a no-fault system would merely redistribute benefits to at-fault drivers and that lawyers are often needed to help injured people negotiate the process and receive their entitlements.

ICA’s GM Consumer Relations Vicki Mullen told the roundtable that dispute rates in the current scheme are “fairly high”. But one delegate argued this is because insurers are always rejecting claims.

Ms Mullen says changing to a first-party scheme would create a direct relationship between claimant and insurer, because injured people will claim against their policies. This would raise the incentive to give clients a good experience.

Sydney University Professor of Rehabilitation Medicine Ian Cameron told the roundtable scheme design can help or hinder recovery, but people injured outside compensation schemes recover better than those inside them.

Factors that help recovery include a simple claims process, effective communication with the insurer, clear and objective information and advice, a positive outlook and supportive and well-informed health professionals.

Hindrances include a complicated and adversarial process, a prolonged claims procedure, severe pain and disability and treatment delays.

Other speakers argued cutting benefits to children after five years would hurt families because children often need ongoing intervention while their bodies are growing.

Meanwhile, John Della Bosca and John Walsh have been appointed as special advisers to the CTP steering committee.

Mr Della Bosca is a former NSW finance minister who is campaign director for Every Australian Counts, the campaign for a national disability insurance scheme and Mr Walsh is a consultant and actuary in the accident compensation, health and disability fields.