DRIVERS will end up paying more for their greenslips and car accident victims will be forced onto welfare under the NSW government's overhaul of the system, critics say.
Laws to make the Compulsory Third Party (CTP) insurance scheme "fairer and more affordable" will be introduced to parliament this week.
Finance Minister Greg Pearce says a 'no fault' scheme will give accident victims faster access to benefits, while motorists will pay up to 15 per cent less for their greenslips.
But Opposition Leader John Robertson says motorists in NSW are still going to pay some of the highest premiums in the country.
He's also warned of further hikes, with no-fault schemes in other states having resulted in major deficits.
"I am very worried we are going to see massive blow-outs in premium costs," Mr Robertson said, adding the government couldn't force private insurers to reduce their prices.
He's also concerned that NSW is the only place in the world to implement a no fault scheme privately underwritten by the insurance companies.
Only last year, he said Mr Pearce had increased greenslip premiums by 15 per cent.
"Now he comes out and says we're reducing premiums by 15 per cent ... and bringing them back to where they should have been in the first place.
President of the Law Society of NSW, John Dobson, says the no-fault system is a gimmick and a "front" for cutting off benefits.
"(It) will generate more claims, cost more to administer and pay out less to injured motorists," he said.
Mr Dobson warned injured motorists could be relying on welfare after a few years, with the vast majority of accident victims getting reduced benefits - "drip-fed by insurance companies with no access to significant lump sum payments".
"These benefits will be cut off after a few years, regardless of whether the person is able to return to work.
"If the government wants to deliver political sugar to marginal seats in the form of lower green slip prices, it should not be innocent victims of motor accidents who pay the price."
Greens NSW MP David Shoebridge says the changes sounded appealing but contained some nasty surprises.
"What this means in practice is no consideration of how the injury impacts on your life, drastically reduced benefits for many of the people injured on our roads and no help from your lawyer when negotiating against a well-heeled insurance company," he said.
Under the new scheme only a fraction of those injured on the roads will be fully compensated for their loss, he added.
"Everyone else who falls below the threshold of greater than 10 per cent whole person impairment will get greatly reduced statutory benefits."
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