FEEL OKAY ABOUT LOSING $20MILLION ?

A shout out to our NSW motorcycling friends who stand to be badly affected by possible massive reductions in the Green slip benefits available to the group who is most seriously injured by the negligence of blind eyed car drivers.

 The Government is trying to score points by getting Green Slip prices down by a modest amount.   Will they do this by stealing the existing proper rights available to the most vulnerable groups hit by phone wielding drivers?

Your comprehensive insurance policy can cost approx. $1200 insuring say to $15,000 vehicle damage.    For a modest $700 Greenslip you are insured against any damage to another person including your family and friends for up to $20 Million.  If you are the victim, do you want your rights capped and being forced into the poor public health system or do you want access to $20Million where appropriate?   Hasn’t green slip insurance got to be the cheapest life policy around at present?   Possibly not for long much longer.

Why are NSW Greenslip prices where they are? 

 No one is asking that question or owning up.  Aside from NSW having the best and fairest motor injury scheme in the Country (which makes premiums a little higher but very cheap for the high level of benefits received) it is because insurers have been raking in profit margins of 18-19% for years, against a guideline margin of 8%.

 How has this happened?

Why has it been allowed to happen?

 This is what we should be asking, not hearing political speak about a modest reduction in premiums with a corresponding massive reduction in benefits to injured motorcyclists, pedestrians, cyclists and motorists, the victims of another driver’s idiocy.

 Premiums are set by the State Insurance Regulatory Authority in liaison with insurers.  Agreement is reached on likely inflation rates, superimposed inflation rates (increases in medical costs and so on) and projected claim numbers.   Premiums are then set based on these assumptions.

Oops - for the past 5-6 years none of the underlying assumptions have been met.  Inflation has been lower than expected, superimposed inflation has been lower than agreed and claim numbers have only recently crept up to the agreed level.    Insurance profits have been way too high for all that period.  Who is to account for this mess?   How can premiums be better arranged in future to avoid a repeat of increased premiums due to excess insurer profit?

These are questions that the Government, the Cross Bench and the Opposition should be asking, not considering slashing benefits for the most vulnerable accident victims.

Let us hope the NSW Government gets it right.

Robert Bryden

Robert Bryden Lawyers Pty Ltd

www.robertbrydenlawyers.com.au