The NSW Government has announced a review of its compulsory third party (CTP) model, with Minister for Better Regulation Victor Dominello slamming the scheme as “inefficient and unsustainable”.

He says the greenslip scheme, in operation since 1999, is now the least affordable in Australia, with premiums up 70% since 2008.

“Most motorists in NSW are now paying about $600 or more for their greenslip and, without reform of the scheme, premiums are forecast to increase by a further 10-20% over the coming year.

“Over the past decade only 45 cents in every premium dollar has been returned in benefits to injured road users, with the rest going towards scheme costs and providers.”

Mr Dominello says the Government will consult with insurers, lawyers, medical professionals and other stakeholders.

Insurance Council of Australia CEO Rob Whelan cautions CTP reform is a “highly complex matter”.

“Any changes to the scheme must support the needs of motorists and injured people, reduce costs and promote insurer competition to keep premiums down,” he said.

IAG Australian Consumer Division CEO Anthony Justice has welcomed the review.

“We support changes to the scheme that will return more funds to those people seriously injured in an accident,” he said. “We strongly believe people should have the security of knowing if they’re injured in an accident, the claims process will be simple to access and focused on health recovery.”

The Government has published an options paper for the public consultation.

The review will focus on four objectives: increasing the proportion of benefits provided to the most seriously injured road users; reducing the time it takes to resolve claims; reducing opportunities for claims fraud and exaggeration; and reducing the cost of greenslip premiums.

Public consultation closes on April 22 and the Government plans to announce its response in the second half of the year.

The options paper is available here.