When you buy a car in New South Wales, you’re required by law to register it and obtain a Green Slip. With its history dating back to 1942, motor vehicle owners and drivers treat it as just any other car ownership expense.
However, green slips offer numerous benefits, especially when you’re involved in a road accident. In such instances, a green slip ensures that you receive the necessary assistance.
Even then, green slip insurance can seem a bit confusing, especially since the guidelines and rules can change depending on the vehicle and registration status. This guide seeks to set the record straight when it comes to green slips in NSW.
Understanding Green Slips
A green slip is also referred to as CTP insurance. It’s a type of motor vehicle insurance that provides both income and medical compensation for motor vehicle accident victims, regardless of the at-fault party. It’s mandatory for all registered motor vehicles.
A green slip covers your liability, or that of someone else driving your car, for personal injuries resulting from the accident.
Depending on the party that was at fault for the accident, a green slip may make you eligible for a lump sum compensation under common law damages. You might also get compensated for any medical expenses incurred during your claim duration.
At-fault drivers might also get limited compensation for medical costs and loss of income.
What Does a Green Slip Cover?
A CTP green slip protects road users from third-party personal injuries in the event of an accident. Third parties can be other drivers, pedestrians, cyclists, or passengers in other vehicles or your vehicle.
Typically, a green slip or CTP insurance policy coverage encompasses a few things. They include:
- Liability– You and other drivers driving your vehicle will not be liable for any injuries obtained from an accident in which your motor vehicle was involved.
- Loss of income and earning capacity- Accident victims who aren’t at fault can claim compensation for lost income. The green slip coverage can provide a percentage of your pre-accident weekly income to help you cope with the loss of earning capacity.
- Past, current, and future medical costs– A green slip also covers medical costs associated with the injuries obtained from the road accident, which can include up to 6 months of treatment and other types of medical care.
- Domestic support and help you might need– If you or other accident victims require domestic support and help as you recuperate from your injuries, the green slip may also cover these costs.
What doesn’t the green slip cover?
A CTP insurance green slip doesn’t provide coverage for property damage. This includes damage to your vehicle, other parties’ vehicles, or any other property. In other words, if you’ve had an accident and your vehicle was damaged, CTP insurance won’t apply.
This is why you should know the difference between CTP insurance and comprehensive car insurance.
While CTP insurance doesn’t provide any form of compensation for property and vehicle damage, comprehensive car insurance protects you from property damage on your vehicle, other vehicles involved in the accident, or any other property.
The Importance of a Green Slip
If you don’t have a green slip and your vehicle is involved in an accident resulting in injuries, you may be liable for medical treatment expenses and loss of income. On top of that, you might get fines, penalties, and other legal consequences for driving an unregistered and uninsured vehicle.
You may end up spending tens or hundreds of thousands of dollars.
How to Get a Green Slip
You can obtain a green slip directly from a licensed insurance provider or by making an online application through various agents and outlets. NSW has six licensed insurers from whom you can get your green slip.
To get a green slip, you must provide the insurer with honest information about you, your vehicle, and other people who drive your vehicle. Here’s a breakdown of the information needed:
- Vehicle details– You must provide your car’s year of manufacture, make and model, and garaging postcode.
- Details about you or other drivers– You’re required to provide the age of the youngest driver and demerit points.
On top of that, you’ll be required to provide the vehicle’s registration documents. For new registrations, you’ll have to provide your car’s Vehicle Identification Number (VIN) or chassis number.
Once, you’ve provided this information, the insurer will provide a green slip quote and you can decide whether to proceed or not.
How Much Does a Green Slip Cost?
CTP insurers consider various factors to determine the cost of your green slip. At the basic level, they’ll consider owner and vehicle factors, such as driver history, make and age of the vehicle, and geographic location.
SIRA has five geographic (rating) regions, namely:
- Sydney Metropolitan
- Outer Metropolitan
- Newcastle/Central Coast
- Wollongong
- Country
After that, the insurer looks at the age and gender of the listed drivers. For example, if the owner or drivers have a history of traffic offences, demerit points, and at-fault claims, your CTP premium might be higher than average.
SIRA’s last CTP insurance reformation in 2017 led to lower green slip prices. Before then, the average green slip prices for all vehicles were $635. After the reforms, the average price fell to $486.
The CTP 2017 prices became more affordable since:
- The focus shifted from compensation to recovery
- Resolution of car accident compensation claims became expedited compared to the previous scheme under the Motor Accidents Compensation Act 1999
- SIRA gained greater control and regulation of insurer’s profits
You can shop around and get different green slip quotes from the Green Slip Price Check website. It’s important to keep shopping around for better rates at every update to ensure that your coverage is competitive in the current market.
Who Sets the Prices?
Green slip prices are set by approved insurers but must be vetted and approved by SIRA. Currently, insurance companies file green slip rates every four months, meaning rates can change thrice annually.
Insurers are required to submit proposed premium filings, containing the proposed rates and supporting information, to SIRA. They may submit a non-compulsory filing if they wish to renew their premiums at other times of the year.
SIRA may reject a filing if they find the proposed premiums:
- Excessive
- Won’t fully fund the insurer’s liability
- Don’t comply with SIRA’s Premium Determination Guidelines
The Premium Determination Guidelines are issued by SIRA to regulate how insurers set green slip premiums.
What Happens if I Don’t Have a Green Slip?
While the green slip is a mandatory requirement on NSW roads, there are some instances where you might find yourself driving without one. Perhaps you could be driving your parent’s car or a friend’s, or you didn’t realise that yours has expired.
Your green slip should be renewed within 21 days once it has expired. Otherwise, driving a vehicle without a valid green slip is illegal and punishable. This could attract a fine of $1,200.
If you’re involved in a motor accident that causes personal injury or death, you could be sued for a significant amount.
To avoid such an occurrence, be sure to contact your insurer and renew your green slip every time it’s due.
How to Claim Compensation with a Green Slip
If you’re involved in a motor vehicle accident in NSW or any other state, you might be eligible for a green slip or CTP insurance compensation. However, you need to follow the right steps to increase your chances of receiving proper compensation.
These steps are:
- Report the accident within 28 days – Report the accident to the police and obtain an event number. If you don’t have a police event number, the insurer might ask for more information, such as hospital reports and photographs of the accident. Note that you’re required to do this within 28 days of the accident.
- Seek medical attention – Visit a hospital as soon as possible and request a certificate of fitness for work. Keep in mind that initial hospital and ambulance care is covered at this moment so don’t be afraid to seek medical attention.
- Find the insurer – You’ll then need to find the CTP insurer to file your claim. If you have all the accident details, you can use the CTP Connect online portal to find the insurer. If you can’t find the at-fault driver’s insurer, you can use CTP Assist to find the relevant insurer. You can call CTP Assist on 1300 656 919 or email at ctpassist@sira.nsw.gov.au.
- Complete CTP claim form – You can now complete your CTP claim form by completing the Application for Personal Injury Benefits and Certificate of Fitness for Work.
- Gather all relevant supporting documents – The more supporting documents you provide, the higher your chances of a successful CTP claim. Certificates you can gather include medical certificates, medical expense invoices, proof of identity, and proof of earnings.
- Submit CTP claim form to insurer – Once you’ve completed the above 5 steps, it’s time to submit your CTP claim form to the relevant insurer. You can submit your claim via an online portal, email, or post.
- Await the insurer’s response – The ball is now on the insurer’s side. The insurer will make a decision for weekly payments in the first 52 weeks after the accident within 4 weeks. A decision for weekly income payments after 52 weeks is made within 3 months of your application.
Common Challenges in Green Slip Claims
If you follow the previous steps to the letter, you increase your chances of a successful green slip claim. However, this isn’t always the case. You may encounter some challenges that may slow down the process or lead to an unfavourable decision.
Some common issues experienced during the green slip compensation process include:
- Processing delays
- Insufficient evidence
- Liability disputes
- Non-compliance to timelines
If your green slip compensation claim has been denied, you can read more on some possible reasons for denial and what options you have.
Also, if you’re not happy with the insurer’s decision, you can request an internal review within 28 days of the insurer’s decision. An internal review is when the insurer reviews your CTP claim and changes or sticks with the decision.
The insurer selects a person with the required skills, experience, and knowledge who wasn’t involved in the initial decision to have another look at your case. They will look at the information provided in the initial claim and may request further details.
The best strategy to avoid these challenges and pitfalls is to work with experienced green slip compensation lawyers.
How Alliance Compensation & Litigation Lawyers Can Help
We’ve seen that the process of filing a compensation claim has many variables involved. Don’t forget that the insurance company also has a team of specialists and experts. That’s why you need to work with an experienced team for the best outcome.
Alliance Compensation & Litigation Lawyers has an experienced team of legal specialists to help you collect evidence, gather all necessary supporting documents, and complete your compensation claim.
Besides, we’ll guide you on the best way forward if you’re not content with the insurer’s decision.
Make your Green Slip work for you
A green slip is a mandatory requirement for all vehicles in NSW. It helps cover the liability of drivers involved in a motor vehicle accident, resulting in injuries. The best way to make your green slip work for you is to ensure you’re always up-to-date after expiry.
Most importantly, work with experienced green slip compensation claim lawyers who will take care of the entire legal aspects while you recover. Contact Alliance Compensation & Litigation Lawyers for assistance with your green slip claim.
Frequently Asked Questions
Can I claim if I am partially at fault?
Yes, you can still complete your green slip compensation claim if you were partially at fault. However, the compensation amount will be reduced.
What if the other driver is uninsured?
If the other vehicle was uninsured or you were not able to identify it, you can still file a compensation claim against the Nominal Defendant. The Nominal Defendant acts as the CTP insurer for unregistered, uninsured, and unidentified vehicles.
How are NSW green slip premiums calculated?
Insurers consider various factors when calculating your green slip premiums. These factors include the age and make of your vehicle, the age of the youngest driver, driver’s history, demerit points, and whether you’ve had an at-fault motor claim in the past 2 years.
What are the time limits to make a green slip compensation claim?
You should make your green slip compensation claim within 28 days of the accident to be eligible for income loss protection. The final date for green slip compensation claim filing is three months from the date of the accident.
Insurers may extend this period in some cases and may need more information to consider your case.
