Over four million motorists in New South Wales are eligible to receive refunds of up to $125 after a revamp of the state’s compulsory car insurance scheme.

However, motorists only have up to September 01 to file for the refund, or else the unclaimed money will go to a fund designated to help people injured in car accidents.

The $300 million refunds are part of insurance sector reforms led by Finance Minister Victor Dominello, which have reduced compulsory third-party (CTP) insurance premiums by up to $172 a year. NSW motorists previously paid the highest CTP premiums in the country at an average of $710. The new and more affordable green slip scheme came into effect on December 01.

Motorists owning vehicles registered between December 2016 and November 30, 2017 are likely to be eligible for the refund. They will have to create an account on MyServiceNSW to file a claim. The application process has an administration fee of $10 and can take up to 10 days before the money is deposited in the motorist’s nominated bank account. High claim volumes have caused some technical delays, so the NSW government has asked motorists to be patient.

Motorcycle owners are not included in the refund as their CTP premiums are unchanged. However, injured motorcycle riders, including those at fault for the accident, will receive more benefits under the new scheme.