Consumers now have more choice in the New South Wales compulsory third party insurance (CTP) scheme with the announcement insurer Youi has secured a licence to offer the mandatory cover to all NSW motorists.
CTP insurance, also known as a ‘Green Slip’, is required by NSW law in order for motorists to register their vehicle in the state.
Unlike other forms of insurance, a Green Slip doesn’t cover damage to your vehicle, other vehicles or property, but rather covers costs such as medical treatment and care for people injured in a road accident.
Youi is the first insurer in recent years to be granted a CTP licence, joining just five other certified providers in New South Wales – GIO, NRMA, QBE, AAMI and Allianz.
While Youi previously offered its customers a CTP policy via another insurer, this latest announcement means it is now able to launch its own end-to-end product after being approved by the State Insurance Regulatory Authority (SIRA).
“As one of Australia’s leading insurance challenger brands, we’re delighted to have been given the opportunity to participate in the NSW CTP market,” Youi CEO Hugo Schreuder said.
“Increased competition is good for any market and Youi is one of Australia’s leading challenger insurance brands.”
A new CTP scheme took effect in December 2017, with reforms allowing for cheaper premiums, faster payments, a crackdown on fraud and a reduction in insurer profits.
As a result, Green Slip prices are currently at a decade low, with NSW drivers saving $149 on average a year.
“Under the old scheme premiums reached a record high of $635 for the average NSW vehicle owner and would have continued to grow. Under the new scheme, they have decreased to $486,” NSW Minister for Customer Service Victor Dominello said.
“Competition promotes innovation and drives down prices and the biggest winners will be drivers,” he added.
“Having Youi enter the market is a game changer. Before the reforms insurers were leaving the market, but this decision is testament to the new CTP scheme’s success since it took effect in December 2017."
According to data from SIRA, the slowest insurer to pay claims is currently AAMI, followed by GIO, NRMA and QBE, with Allianz as the most responsive insurer.
Of claims lodged by injured people and their families, over 98 per cent were accepted in both 2019 and 2020.
Typically, the remaining percentage was declined due to the following common reasons: the claim was lodged late (more than 90 days after their accident), the claim did not involve a motor vehicle accident or the claim related to a serious driving offence.
Customers looking to access Youi’s CTP product can visit this website or call 1300 004 007.
Anyone looking for Green Slip insurance is encouraged to use the state government’s price check page to compare quotes. You can access it here.