Labor MLC Greg Donnelly predicts insurance payouts to injured parties will be slashed by State Coalition changes.
Labor MLC Greg Donnelly predicts insurance payouts to injured parties will be slashed by State Coalition changes. Trevor Veale

Labor MLC says insurance changes to make injured feel worse

MOTORISTS from the Coffs Coast will see payouts to people injured in accidents through no fault of their own cut in half under the changes announced by the NSW State Government.

That's the prediction of Labor MLC for Coffs Harbour, Greg Donnelly.

"People living in Coffs Harbour know there is always a risk of a car accident and driving safely is the only real personal insurance policy," he said.

"Should the worst happen however, cutting the payouts in half for injured motorists is neither fair nor reasonable when it comes to helping with the recovery or any long term medical bills."

Mr Donnelly said the move to a no-fault scheme - allowing for negligent motorists to apply for claims - will also lead to significant rises in the number of claims being made and will drive up the cost of premiums.

"When a similar publicly underwritten no-fault scheme was introduced in Victoria there was a massive increase in claims leading to a $1.4 billion deficit.

"Any small short-term savings for drivers will be wiped out by the 15% increases in the cost of green slips since the O'Farrell/Stoner Government was elected.

"This is another kick in the guts for NSW motorists and families.

"Families will still pay some of the highest premiums in the country for CTP insurance and now the payouts to motorists who are injured through no fault of their own will be cut in half.

"This scheme could see an extra 7,000 claims flood in from at fault drivers - with a blow out in premiums the only possible result."



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