Earlier this year the NSW Government announced that they were considering options for reforming the Greenslip Insurance in NSW. The Government issued a report. The report identified a number of potential options for changing the scheme. These included four options. They were:
- Option 1 – retain the current common law fault based system with process improvements.
- Option 2 – retain the current common law fault based systems with adjustments to the benefit level as well as process improvement.
- Option 3 – move to a hybrid no fault defined benefit scheme with the common law benefits retained in parallel.
- Option 4 – move to a fully no fault defined benefit scheme with caps, thresholds and no common law.
The Government’s stated aim was to achieve a system whereby injured motorists recovered a greater percentage of the greenslip premium.
Public submissions were sought. A variety of submissions were made. At this stage it is not clear which of the options the NSW Government will settle on. It is clear that “small” claims are likely to be substantially affected later this year. It is likely that additional thresholds, caps and restrictions will apply to more minor claims. Until any draft legislation is introduced it is impossible to accurately set out what they will be. However, one thing is clear. Anyone involved in a motor vehicle accident should act promptly and lodge a claim form now. It is unlikely that the changes will apply to claims where the claim form has already been made.
It is also very clear that small claims will receive much less under the new system.
Kells can assist you in completing and lodging any necessary claims. For further information contact David Potts on 4221 9311.