The Minister for Innovation and Better Regulation, the Honourable, Victor Dominello MP announced in a media release on 2 March 2016 that the Government is establishing a task force to counteract Compulsory Third Party (CTP) fraud in New South Wales and will also conduct a review of the present CTP scheme.
The first review completed by this task force was released on 19th August 2016 by the Standing Committee on Law and Justice.
The review was wide reaching to encompass fraudulent and exaggerated claims, claims harvesting, future design of the scheme, New South Wales Government reform plans, journey claims and worker protections, claims pertaining to non-motorised vehicles and dirt bikes, motorcycle classes and premium setting for ride-sharing operators.
The review made the following eight recommendations:
That the State Insurance Regulatory Authority include the data solely for CTP scheme efficiency and the data for combined CTP and Lifetime Care and Support scheme efficiency in its annual reports.
That the State Insurance Regulatory Authority finalise the new forms for requesting allied health services and case manager or rehabilitation provider services, as soon as practicable.
That the NSW Government amend Division 1A of the Motor Accidents Compensation Act 1999, including through the removal of section 89A, to address concerns with the settlement conference process.
That the NSW Government amend the late claims process under section 73 of the Motor Accidents Compensation Act 1999 by extending the period in which a claim can be made without explanation from six to 12 months.
That the NSW Government urgently reform the costs regulation to deter exaggerated and fraudulent claims, especially in regards to low severity injuries to both minors and adults.
That the NSW Government consider how journey claims are treated under any CTP scheme.
That the State Insurance Regulatory Authority consult with the Motorcycle Council of NSW to consider consolidating the current five classifications of motorcycles in New South Wales into the following two classes: Learner Approved Motorcycle Scheme (LAMS) and non-LAMS.
That the NSW Government establish a fair and equitable CTP premium for all vehicles used in commercial ride share operations
Mr Mark Nelson, Partner of Beilby Poulden Costello Lawyers said, “The Government has a clear agenda to reduce the cost of a green slip in New South Wales and is keen to see that a high proportion of the green slip premium goes towards helping the injured person. The establishment of a fraud task force should lead to both deterrence and discovery of fraudulent behaviour to the scheme’s benefit. It would be a tragedy for innocent accident victims to see the current scheme abolished without giving the effect of the establishment of the fraud task force time to be properly measured. The present scheme delivers fair compensation to innocent accident victims and according to the review by the government’s own State Insurance Regulatory Authority, is more affordable in real terms now than in past years (referable to Average Weekly Earnings). He went on to say, “We are following the review process very closely and its impact on our clients. It is important that potential changes to laws relating to the CTP insurance scheme are highlighted and communicated throughout the process. We are hopeful that the rights of individuals are considered to be at least as important as Insurer profit margins.”
Beilby Poulden Costello Lawyers offers the services of accredited personal injury law specialists who are ready to assist members of the community. To learn more about the business and the comprehensive range of legal services offered, visit the website here: http://www.bpclaw.com.au/
About Beilby Poulden Costello Lawyers
Beilby Poulden Costello Lawyers is a leading Sydney legal practice with accredited motor accident compensation lawyers, specialist workers compensation lawyers. The practice has its origins as a legal practice started by Barry Beilby in 1975. The business expanded significantly in 1993 when the practice merged with that of Flannery Mura & Costello, a firm specialising in Compensation law.
Release ID: 131256