NSW goes after green slip fraudsters

Insurance companies have welcomed news of the NSW government setting up a taskforce to investigate car accident insurance fraud.

Suspect insurance claims relating to car accidents will be investigated by a new taskforce. (AAP) Source: AAP

A jump in suspect insurance claims relating to car accidents will be investigated by a new NSW government taskforce.

Insurance companies welcomed the establishment of the NSW CTP Fraud Taskforce on Wednesday to help quash what they suspect is a growing number of fake claims in compulsory third party (CTP) insurance.

Despite a 12 per cent decline in the number of road casualties between 2008 and 2014, the number of CTP claims in Sydney jumped 39 per cent.

Some insurers reported a 30 per cent increase in the past 12 months alone.

The number of people across NSW who used lawyers to help lodge claims for minor injuries also nearly doubled.

Insurers say the blowout in claims is hurting all consumers by driving the price of policies up.

An estimated 10 per cent of all claims involve some sort of fraud, costing the industry $2 billion and adding $75 to each car insurance policy.

File photo. Source: AAP

Suncorp, the country's largest personal injury insurer, said the taskforce was a vital first step to tackling reform in the green slip scheme.

"The current scheme offers large lump-sum payouts for minor injuries, which encourages fraudulent and exaggerated claims that can drive up premiums," Suncorp executive general manager statutory portfolio Chris McHugh said in a statement.

IAG, which owns NRMA Insurance, said dealing with fraud would lead to cheaper and more affordable policies for all motorists in the future, a statement echoed by the Insurance Council of Australia.

"Though most claims are genuine, NSW government evidence shows that an increasing number of claims being lodged are likely to lack merit," ICA chief executive Rob Whelan said.

"It's in the interests of all NSW motorists and people injured in motor vehicle accidents that the CTP scheme is fair, affordable and sustainable."

The NSW CTP Fraud Taskforce will be managed by the State Insurance Regulatory Authority and will examine unusual claims patterns and possible exaggeration of injuries and medical expenses.