Commission investigating alleged insurance underestimates

The NSW Small Business Commissioner is investigating reports from small businesses that a widely-used NSW Government tool for vehicle green slips is underestimating insurance prices.

Commissioner Chris Lamont said he had raised concerns with Service NSW regarding the online insurance comparison tool provided by the State Insurance Regulation Authority (SIRA).

Mr Lamont said his office was recently contacted by a small business owner who found that the quote for CTP greenslip insurance on his work vehicle was 15 per cent higher than the estimate given by the SIRA tool.

He acknowledged the SIRA disclaimer that the estimates were “indicative only” but said at a time of surging insurance and other costs for many businesses, it was particularly important that they be able to estimate their costs accurately.

“If a business is saying, ‘Well, I think I’m up for this amount from one year to the next, all based on the government advice, but I’m actually paying or required to pay 15% or more,’ that’s another concern in terms of rising costs for businesses, who at the moment are already doing it tough.” Mr Lamont told Smart Company.

He called on other small businesses who have used the SIRA tool to share their experience by contacting the Commission.