Ninety per cent of people injured in vehicle accidents will have
to battle giant insurance companies alone and without legal
assistance under controversial changes to the NSW CTP Green Slip
scheme put forward by the government.
This is just one of the detrimental effects of the proposed
reforms for the Compulsory Third Party (CTP) scheme announced by
the NSW government, said Justin Stack, Managing Director of Stacks
"While the current CTP scheme has problems, these reforms
go too far against the interests of the victims of vehicle
accidents, and give too much power to the giant insurance
companies," Mr Stack said.
"Insurers have a vested interest in not paying out for
injuries, so the entire focus for justice for victims has
The government has proposed a no-fault, low-benefits,
compensation style scheme for motor accident victims. After a
certain period, only about ten per cent of accident victims receive
any ongoing benefits.
Instead of a government agency dispensing benefits which has
some sort of oversight and obligation to treat accident victims
fairly, the scheme will rely on five powerful private insurers
whose only motive is to maximize profits and squeeze victims.
"The vast majority of people with long-term loss of
earnings and long-term medical needs will be pushed into reliance
on Centrelink payments or public hospitals and Medicare. The
taxpayer will effectively be picking up the bill for the insurance
"If victims dispute a decision on lost earnings and future
medical needs, it will be the insurer who receives the appeal, the
same company that just denied the benefit."
"This is obviously unfair, and groups like the Australian
Alliance are deeply concerned there will be no independent way
to review decision making by the insurers, and that ninety per cent
of claimants won't be allowed to engage a lawyer to assist them
to access benefits to which they are entitled.
"Insurers have powerful teams of highly experienced
in-house legal experts, and to expect accident victims to battle
against them without anyone qualified to help or support them is a
denial of justice."
"Stacks Law Firm has extensive experience in this aspect of
law and we are concerned vehicle accident victims will be denied
their rights, and insurance giants will pocket massive profits.
"It sounds good for the NSW government to say the changes
will bring down the cost of a green slip, but we've seen what
happened with similar changes to the NSW Workers Compensation
scheme - accident victims got less and insurers' profits went
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