The Medical Care and Injury Services (MCIS) levy funds the Lifetime Care and Support scheme, which meets the lifetime treatment, rehabilitation and care needs of people who have been severely injured in motor vehicle accidents in New South Wales, regardless of fault. The levy also covers the cost of hospital and ambulance services for all people injured in motor vehicle accidents in New South Wales and the administration costs of the Compulsory Third Party (CTP) scheme.

The MCIS levy, which is GST-free, is calculated as a percentage of the insurer premium component of a Green Slip. The percentage of the levy differs between vehicle classes and geographic zones, based on accident and injury rates for the selected vehicle type and zone. The MCIS levy rates for private use motor vehicles, as a percentage of the insurer premium in each of the five CTP geographic zones, effective from 1 October 2016, are set out below.

MCIS Levy Rates for Private Use Motor Vehicles – 1 October 2016

(2) CTP insurance rebates are currently prohibited under the Motor Accidents Compensation Act 1999. A Green Slip covers the policy holder or the driver of a registered vehicle against claims from a range of other road users injured in an accident involving the motor vehicle. There is no Government subsidy to the scheme, therefore all compensation payments made under the CTP scheme must be fully funded by the Green Slip premiums collected from vehicle owners. A rebate on the payment of CTP insurance for particular motorist groups may undermine the legal requirement that the CTP scheme be fully funded.

However, while there are no rebates available from the payment of CTP insurance for particular motorist groups, a CTP insurer may apply a variety of risk-rating factors, such as the age of the driver, the age of the vehicle, where the vehicle is garaged, driver safety record or claims history, to offer a discount on Green slip premiums to drivers considered to have a low risk profile. Discounts for each vehicle class may be within a range of 15 per cent below an insurer's base rate premium. There is also an extended discount of up to 25 per cent available for drivers aged over 55.

As CTP insurers apply the various risk-rating factors differently, Green Slip premiums do vary between the insurers. There is no obligation for a motorist to renew their CTP insurance with their current insurer. The best premiums on offer may be obtained by telephoning the Green Slip Helpline on 1300 137 600 or visiting the Green Slip price calculator at www.greenslips.nsw.gov.au.