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Rego hike another hard blow

Tuesday, 22nd January, 2013

Ben Ragenovich says families like his struggle with all the rising costs and the dearer green slips was another blow. Ben Ragenovich says families like his struggle with all the rising costs and the dearer green slips was another blow.

The cost of the average green slip is expected to rise to almost $600.

Broken Hill man Ben Ragenovich said families will struggle with the price rise.

"This will mean more cost for less services," Mr Ragenovich said.

The increase in car registration fees comes on top of soaring electricity, gas and water bills in NSW.

It was revealed yesterday that the Government had approved raising the cost of the average green slip to $578.

This will only put more strain on the family budget, according to State Opposition Leader, John Robertson.

"A $50 increase in the price of the average green slip is the last thing families already struggling with higher prices under the O'Farrell Government need," Mr Robertson said.

"The Premier should be calling the insurance companies into his office and demanding they open their books and explain why these cost increases are
necessary.

Mr Ragenovich he and his partner have four children and need a sevenseater car.

"Our car weighs 2.1 tonnes and we have to pay a weight tax," he said.

He said things were becoming more difficult as prices for everything keep going up.

However, NRMA Insurance said green slip premiums had to rise to ensure it could pay claims and support those injured on the roads.

NRMA Insurance Head of Comprehensive Third Party (CTP) Portfolio Mary Maini said that like all CTP insurance schemes across Australia, the NSW CTP scheme had been hurt by difficult economic conditions.

"We collect premiums and hold this money to pay claims, and we also invest it into low risk government bonds to provide additional funds to pay claims and generate income. As bond rates fall, so does the amount of investment income generated.

"Bond rates have halved over the past 18 months. This means premiums must increase to ensure we have enough money to pay future CTP claims."

NRMA Insurance has also seen claims rise by more than 12 per cent over the past three years, Ms Maini said.

But Mr Ragenovich said he did not agree with the NRMA's statement that premiums had to increase.

"As more cars get on the road, that means more money they will have to cover costs," he said.

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