A state government is establishing a taskforce to crack down on compulsory third-party insurance fraud following an alarming spike in suspect claims.
The NSW Government’s Minister for Innovation and Better Regulation Victor Dominello says the average green slip for a car in Sydney now costs more than $600, and prices have risen up to 70% since 2008 – with fraud being a contributing factor.
“The NSW Government has identified an alarming rise in suspected fraudulent CTP claims. This is unfair and cheats all motorists who end up paying higher green slip prices,” he says.
“A dedicated fraud taskforce is being established to crack down on this issue.
“I strongly urge anybody who suspects fraud to report it to the newly established CTP Fraud Hotline.”
NSW Government data indicates that fraudulent and exaggerated claims are contributing to a $75 increase for each NSW green slip.
The taskforce, chaired by the Chief Executive of the State Insurance Regulatory Authority, will make recommendations to the NSW Government on strategies to deter, detect and respond to unmeritorious and fraudulent CTP claims.
IAG welcomes the taskforce, saying the rise in suspicious CTP claims has been significant over the past few years and is accelerating dramatically.
“Despite decreasing casualty rates and safer road awareness campaigns, the number of CTP claims across the industry increased by 39% between 2008 and 2014 and we have seen a 30% increase in just 12 months,” IAG Australian Consumer Division Chief Executive Anthony Justice says.
“CTP insurance is designed to protect motorists from the financial cost of injuring someone else on our roads, but unfortunately there are some extreme claims that are considered to be fraudulent.
“We will continue to actively work with the government and the relevant authorities to remove such practices.”
The taskforce will also develop an education awareness campaign that will inform the public on fraud being a community issue.
The taskforce will comprise of representatives from NSW Government agencies and the legal, health and insurance sectors.