PENSIONERS TO PAY MORE FOR GREENSLIPS

PENSIONERS TO PAY MORE FOR GREENSLIPS

4 June 1999

Member for Lismore, Thomas George expressed disappointment that the insurance company CIC is quoting some pensioners up to $88 more for the same Compulsory Third Party cover.

Susan Gilles, of Goonellabah received her Greenslip renewal notice from CIC which stated that her premium would be $325.

When Susan, a single parent recently unemployed, asked for a quote for pensioners, she was informed that it would rise to $412.

This 27% increase was defended by the Managing Director, Leon Rothman. He stated the rates were agreed to by the Motoring Accidents Authority, and that since statistics indicated pensioners, aged between thirty and fifty-nine, were more likely to claim on their CTP insurance then the increase was warranted.

A spokesperson for MAA agreed with Mr Rothman `in principle' in that base figures were approved by the Authority, but after that companies had a 15% leeway `depending on various factors'.

The Government's amendments to the Motor Accidents Bill, introduced by The Hon. John Della Bosca MLC this week, aims to free up underwriting criteria in order to invoke greater free market competition between insurance companies.

"Individual competitive markets are important, but not at the expense of the disadvantaged. The role of the Government is to act as a regulator to ensure best placed competition. Disadvantaging already disadvantaged people is not.

"The Government is publicising a saving of $100 to the `average' person once this legislation is passed, yet their definition of who the people of NSW would define as `average' and those who will actually receive such as a substantial discount is greatly at odds," Mr George said.

"Under these proposed amendments, people who fall into `greater risk' categories will pay even more than what they are currently charged.

Mr George has made representations to the Shadow Attorney General and called on the Government for an investigation into higher charging of pensioners.

"FAI charges nearly $120 less for pensioners. I see no reason - statistically or otherwise, why other companies could not follow suit". Mr George concluded.