The Compulsory Third Party scheme is funded by NSW motorists. In order to keep the scheme affordable, the Motor Accidents Authority and licensed Compulsory Third Party insurers have in place provisions to deter and prevent people from making fraudulent or false declarations and claims.
The Motor Accidents Authority has become aware of a suspected Compulsory Third Party (CTP) insurance scam involving fraudulent Green Slips. A cluster of fraudulent policies have been identified in Southern and South Western Sydney and there are isolated reports from other locations.
Motorists with policies that were not purchased from an authorised insurer, agent or broker may not be properly insured, possibly making them personally liable for any injuries they cause. Policies identified as fraudulent may be cancelled, which also means the vehicle registration is cancelled. Driving a vehicle that is unregistered and uninsured is illegal and attracts heavy fines of more than $1,000.
It is important that motorists who suspect they may be the victim of fraud, or have any doubt about the legitimacy of their policy, check directly with the insurer listed on the policy to confirm it is valid.
To find the best priced Green Slip, visit the Motor Accidents Authority’s Green Slip calculator – it’s a free service to compare prices from all seven insurers in just a few minutes. This will also be a good way of checking if the price you have been quoted is accurate.
As a claimant, it is important that information you provide in connection with your claim is truthful. Providing information that you know is false or misleading is an offence and any moneys paid on the claim will be recovered. A fraudulent claim may also result in a fine of up to $5,500 or imprisonment for up to 12 months, or both.
As a member of the public, if you know or suspect that someone is making a fraudulent or false claim under the Compulsory Third Party scheme you should contact the insurer involved. If you do not know who the insurer is you can contact the Motor Accidents Authority Claims Advisory Service by calling 1300 656 919 or emailing email@example.com.