The removal of claims for journeys to and from work under the workers compensation scheme will increase the price of green slips by an estimated $15 to $30 next year, a parliamentary inquiry was told on Thursday.
Accounting firm Ernst & Young has estimated the average cost of green slip premiums will rise to $571 next year under the existing scheme. It expects the introduction of a new no-fault scheme in NSW, if passed through Parliament, similar to the one in Victoria, will reduce the average premium to $474. The changes will also reduce benefits to most injured motorists and cut medical expenses after five years.
Andrew Nicholls, general manager of the Motor Accidents Authority, said the compulsory third party insurance scheme would pick up people who in the past would have made journey claims under the the workers compensation scheme. ''We expect a modest increase in claims,'' he said.
''The exact impact has not yet flowed through so we don't have an exact figure.''
NSW Greens MP David Shoebridge said the E&Y report also showed that NSW medical costs are 44 per cent higher than those in the Victorian scheme. He said the Motor Accident Authority told the budget estimates committee on state finances that the average premium for a green slip next year is estimated to rise by $15 to $30 to meet a surge in journey claims that are no longer covered under the workers compensation scheme.
Finance Minister Andrew Constance said journey claims were not the main driver of CTP increases. He said low bond yields and legal costs were major contributors.