IAG backs investment to crack down CTP fraud

IAG backs investment to crack down CTP fraud | Insurance Business

IAG backs investment to crack down CTP fraud

Major insurer IAG has expressed its support for the NSW Government efforts to stop green slip fraud by allocating $1.2 million on a Compulsory Third Party (CTP) fraud prevention framework.

Anthony Justice, IAG chief executive of Australian Consumer Division Authority, said he looks forward to consultations with the Government on the framework. He is also hopeful that the CTP reform will create a fairer and more affordable CTP scheme for NSW motorists and injured parties.

Justice noted the alarming rise in fraudulent CTP claims in a statement: “Despite falling casualty rates and safer road awareness campaigns, the number of CTP claims in NSW increased by 39 per cent between 2008 and 2015 and we have seen a 30 per cent increase in just 12 months.”

“What we know is that CTP fraud, which includes exaggerated claims and staged accidents, has significantly contributed to the increase in CTP claims and ultimately it’s NSW drivers that pay, through their higher insurance premiums.”

According to NSW Government data, fraudulent and exaggerated CTP claims contribute to a $75 increase for each NSW green slip.

To tackle green slip fraud, the NSW Government has established in March this year the Green Slip Fraud Taskforce and the CTP Fraud Hotline on 1800 600 444.

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