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RISK IN CONTEXT

NSW CTP Reforms - How to Maximise Your Savings

Posted By David Torossian 05 May 2017

Fleet owners and insurers alike will benefit from legislative changes to the NSW Compulsory Third Party (CTP) scheme[1], the State Insurance Regulatory Authority believes.

Under the reformed scheme, which commences in December, premiums for Green Slip policies are expected to fall by an average of more than $100, according to the Authority.

The State Insurance Regulatory Authority said that the new legislation aimed to create a less adversarial system, cutting the need for parties to resort to legal action, which delay the payment of claims and increase costs for insurers.

As part of the reformed scheme, an injured person, regardless of fault, will receive up to six months of benefits including:

  • Weekly income payments (if time off work is required to recover).
  • Medical and treatment expenses.
  • Commercial attendant care (for help needed around the home).

However, businesses may be able to reduce their fleet insurance costs even further, by taking advantage of their broker’s expertise.

Australia Post’s subsidiary, StarTrack, has a fleet of 540 vehicles in NSW, and was provided with quotes that may have seen its premiums jump by 55%, when its NSW CTP insurer, Zurich, left the market in 2016.

However, StarTrack engaged the expertise of Marsh’s transport practice, which was able to use its extensive knowledge of the market and contacts to secure a 5% reduction in CTP premiums.

We were able to directly liaise with our insurer contacts to achieve  a positive outcome.

We negotiated an extension of Australia Post’s existing CTP arrangements so they also apply to StarTrack’s fleet. This not only lowered the client’s NSW CTP insurance costs, it also enabled a seamless transition to a new CTP insurer. This has also helped standardise some of Australia Post’s and StarTrack’s fleet management processes and offers a level of coordination between the two businesses that did not previously exist.

As part of its service, we also arranged for the StarTrack team to access an insurer portal to help streamline day-to-day management of its CTP activities.

Now, the StarTrack fleet team can more easily stay on top of the CTP program for its NSW fleet, at the same time helping to manage business costs.

Speak to your Marsh contact today to find out more.

Disclaimer: This article is for general information and does not take into account your individual objectives, financial situation or needs. You should obtain and read the policy wording or product disclosure statement prior to acquiring an insurance product, which is available from Marsh. This article is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warran ty as to its accuracy.  Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arrange insurance and are not an insurer. LCPA 17/0051

[1] The Motor Accident Injuries Bill 2017 was passed by the NSW Parliament on 30 March 2017. The new CTP scheme will commence in December 2017. – CTP Green Slip Reforms (http://www.sira.nsw.gov.au/green-slips/ctp-green-slip-reforms).

 

David Torossian