Close×

The Sydney Morning Herald has reported that drivers in New South Wales could be hit with having to buy income protection insurance to maintain their current level of cover if green slip reforms progress.

It follows the Baird government's potential move to overhaul the compulsory third party industry.

According to the Australian Lawyers Alliance, the change could have leave some consumers slapped with an annual bill of $4600 in private income protection insurance premiums to maintain current standards of income cover.

A representative of the Alliance, Andrew Stone told Fairfax he believes the move will bloat profits for insurers whilst leaving consumers shortchanged.

"The government is not content with creating a scheme that will line the pockets of insurers by reducing the value of claims made by NSW drivers and pedestrians, but now they are going to force people to take out additional costly insurance from those very same insurers.

"This move is going to hit hard-working families on a budget - the self-employed, tradies and manual workers need an income safety net to keep paying the bills for them and their families if injured."

NSW minister for innovation and better regulation Victor Dominello has swiped back at these claims in a statement to Fairfax.

"Under the current green slip scheme, injured people have to wait three to five years on average to receive income payments, from which significant legal fees are then deducted.

"Where the current system can leave people in financial stress and further traumatised by extended dispute resolution processes, the reforms will provide people with access for the first time to weekly income support if they need time off work to recover."

comments powered by Disqus