ALA argues changes to green slips could cost families more

THE Australian Lawyers' Alliance fears changes to NSW green slips could increase insurance costs for families and put them at risk of losing their homes if the main breadwinner was involved in a serious accident.

ALA's NSW director Andrew Stone questioned NSW Government predictions that the changes, announced on Sunday, would reduce green slip prices by $50-$75.

He said families who followed the government's advice, to take out income protection insurance, would face a higher total insurance bill.

"Currently, those injured through the fault of another in a motor vehicle accident are fully covered for lost wages, but under the proposed changes lost wages will only be paid for "a few months" at a reduced rate and, thereafter, at workers compensation rates (a 20% cut in pre-accident wages)," Mr Stone said.

"Ninety per cent of accident victims will be pushed out of the compensation system altogether within two years of their accident, leaving them reliant upon Centrelink benefits."

He claimed the only solution offered by the government was for "high income earners" who "would reasonably be expected to have other sources of protection such as income protection insurance and disability insurance".

"The Government offers no solution for low to middle income earners," he said.

Mr Stone said if families don't have that extra insurance they will put their homes on the line every time they go out on the road.



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