- Protect our land and water from mining.
- Honesty and integrity in politics
- Local jobs
- People before profits
- Improved heath and education services.

Tuesday, 22 January 2013

Minister caves in to insurer profits with 10% Greenslip rise

 The announcement today that the Finance Minister Greg Pearce has agreed to
an average 10% increase in CTP car insurance, or ‘Greenslips’, is yet another giveaway to the insurance industry who have been gouging super
profits from the system for more than a decade.

As reported in the Daily Telegraph:

Greens MP and Justice Spokesperson David Shoebridge said:

“For more than a decade the insurance industry has been hoodwinking the
government into premium increases that have largely gone in increased
profits, and it looks like they have done it again.

“In its first ten years of operation the CTP scheme generated average
profit for insurers of 20% of all premiums paid.

“This delivered more than $1.7 billion in insurance
superprofits<http://davidshoebridge.org.au/2011/09/19/insurance-companies-gouging-millions-on-greenslips/>in just the first ten years of the scheme.

“In some years, such as 2000 and 2002 the insurers' profits were 30% or
more of every dollar paid into the scheme by motorists.

“Now the insurance companies have come again to the government asking for
premium increases and the government has once again delivered for them.

“With one insurer asking for only a 2.6% increase in insurance premums you
have to wonder why it is that Minister Pearce then agreed to giving other
insurers more than 10% increases in their fees.

“The O’Farrell government wants to blame lawyers fees for the increases,
but they fail to refer to the real cost generator in the scheme, which is
the fat profits their friends in the insurance industry take from motorists.

“With motorists being slugged an average of $50 in increased greenslip fees
it is time they asked this government what they are doing to reduce the
share going to insurance profits and increase the amount going into the
hands of those injured on the roads.

“Just as with workers compensation, this government is ignoring the needs
of the injured and everyday people and cutting deals that only benefit
their mates in the big end of town,”  Mr Shoebridge said.

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