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The NSW CTP Scheme explained

The NSW CTP Scheme is managed by the NSW Government and is compulsary insurance in order to register your vehicle with the Roads and Martime Services (RMS), previously known as the Roads and Traffic Authority (RTA).

The NSW Compulsory Third Party (CTP) Scheme, like all other state schemes in Australia, covers Third Parties for personal injury resulting from a road accident.

The Motor Accidents Compensation Act 1999, and its subsequent amendments, captures the legislation governing the CTP Scheme. There have been many amendments over the years to ensure the objectives as set by the scheme, or the government of the day, remain effective and/or are enhanced. Often these amendments support the benefits offered by a CTP Greenslip policy or ensures the scheme remains competitive and cost effective for New South Wales consumers.

The NSW CTP Greenslip Scheme is managed and controlled by the NSW government, however is currently privately underwritten by six approved insurers. This means that 6 insurers issue CTP Greenslip policies on behalf of the NSW government and also pay the claims. These 6 insurers effectively assume the risk of the CTP Greenslip policy. These insurers can either make money on the policies sold, if priced correctly, or they can lose money if prices incorrectly.

The current approved insurers for CTP Greenslips in NSW are currently as follows:

  • Allianz
  • AAMI – A Suncorp Company
  • CIC – An Allianz brand
  • GIO – A Suncorp Company
  • NRMA
  • QBE

All insurers must charge CTP premiums per vehicle in strict accordance with the regulations governing pricing, as provided by the State Regulatory Insurance Authority (SIRA) which governs the NSW CTP scheme on behalf of the NSW government. Insurers must file rates with SIRA at least once a year and these rates must be approved by SIRA before they can be charged to NSW consumers. Insurers do file new rates more frequently than the once a year minimum requirement and on average do so every four months. For this reason it is always best to keep shopping around for your CTP Greenslip every renewal.

The NSW CTP Greenslip scheme does offer access to treatment and rehabilitation benefits under what they call the Accident Notification Form (ANF). This benefit has increased over the years whereby it now offers up to $5,000 of benefits to injured parties for early treatment. This benefit is available to anyone injured in a road accident regardless of who is at fault. The premise of this entitlement is as follows: early access to treatment often provides for better health related outcomes.

There is a current significant review under way for the NSW CTP Scheme and details of the review can be found here.

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