If you have been injured in a motor accident in New South Wales, you may be entitled to benefits under the compulsory third party (CTP) insurance scheme.
Compulsory third party insurance, also known as “greenslip insurance”, is mandatory for all registered motor vehicles. It provides cover for legal liability arising from injuries or death caused by a motor accident where the insured driver is responsible.
The CTP Scheme at a Glance
The Motor Accidents Injuries Act 2017 (NSW) applies to motor accidents that occur after 1 December 2017 and establishes a no-fault compensation scheme.
Under the scheme, injured road users may receive statutory benefits regardless of who caused the accident, including circumstances where fault cannot be determined. The benefits available depend on the circumstances of the accident.
If an injured person was partly or completely at fault, their statutory benefits may be limited. Any entitlement to further compensation (known as common law damages) may also reduce based on their level of contributory negligence.
A person who was completely at fault will generally not be entitled to damages.
The CTP scheme is regulated and administered by the State Insurance Regulatory Authority (SIRA).
A “motor accident” includes incidents that cause death or injury due to:
- The driving of a motor vehicle;
- A collision, or action taken to avoid a collision;
- A vehicle running out of control; or
- A dangerous situation caused by these events.
The scheme covers drivers, passengers, pedestrians, cyclists, motorcyclists and pillion passengers. It may also extend to people who witness an accident, family members who witness serious injuries or death, and dependants who suffer a loss of support.
What Should You Do If You Are Injured in a Motor Vehicle Accident?
If you are injured in a motor accident, regardless of who was at fault, you should:
- Obtain the details of the other driver, if applicable;
- Report the accident to police as soon as possible and within 28 days to obtain a COPS event number;
- Visit your general practitioner or hospital and obtain a medical certificate (certificate of fitness) from your treating doctor;
- Submit a Personal Injury Benefits claim with the required medical certificate and, where applicable, proof of income to SIRA.
SIRA will notify the relevant insurer, who will contact the injured person within three working days to discuss the claim and available treatment expenses.
The insurer will assess the claim. Within four weeks of receiving a statutory benefits claim, the insurer must advise whether it accepts liability and, if accepted, payments may be made for up to 26 weeks from the accident date.
The insurer must also notify the claimant within three months whether it accepts liability for statutory benefits beyond the initial 26-week period.
What Benefits Are Available?
CTP insurers may provide statutory no-fault benefits for physical and psychological injuries. These benefits may include:
- Weekly income payments for lost earnings;
- Reasonable medical treatment costs, including rehabilitation, physiotherapy, dental and pharmaceutical expenses;
- Travel costs associated with medical appointments;
- Domestic assistance expenses in some circumstances;
- Reasonable funeral expenses where applicable.
Weekly Income Payments
You must lodge a Personal Injury Benefits claim within three months of the accident. However, to receive weekly income payments from the date of the accident, you must submit your claim within 28 days.
Income support payments may be available for the first six months, regardless of who caused the accident. These payments are calculated as a percentage of the injured person’s pre-accident earnings.
Generally, payments are up to 95% of pre-accident earnings for the first 13 weeks and reduce to 85% after 14 weeks.
After six months, income support payments may stop if you were at fault, mostly at fault, or only suffered a minor injury.
A minor injury generally includes soft tissue injuries and minor psychological or psychiatric injuries.
Major Injuries and Common Law Damages
If you suffered a serious injury and were not at fault, or were only partly at fault, you may be able to pursue a common law damages claim.
Damages may include economic loss and non-economic loss.
To claim non-economic damages, a person must generally have suffered a permanent impairment greater than 10%.
Economic Loss
Economic loss may include:
- Past and future loss of earnings or reduced earning capacity;
- Accommodation and travel expenses;
- Financial management expenses;
- Income tax reimbursement where applicable;
- Attendance and respite care services.
Non-Economic Loss
Non-economic loss includes compensation for matters such as:
- Pain and suffering;
- Emotional distress;
- Loss of enjoyment of life;
- Loss of ability to participate in activities.
Common law damages claims must generally be made within three years of the accident. However, insurers must properly consider claims made outside this timeframe.
How a Lawyer Can Help
Obtaining legal assistance with a motor vehicle accident claim can help ensure you meet strict time limits and provide accurate information to support your claim.
For serious claims, it is important to protect your legal rights and make informed decisions to maximise the compensation available to support your physical, emotional and financial recovery.
Many claims are resolved through negotiation with the insurer without the need for Court proceedings. However, if Court representation becomes necessary, your case must be carefully prepared with all relevant evidence and within the required timeframes.