If you are injured in a motor accident, you may be entitled to compensation.
The Motor Accidents Injuries Act 2017 (NSW) establishes a no-fault compensation scheme. This means injured road users may receive statutory benefits regardless of who caused the accident, including situations where fault cannot be established.
The benefits available will depend on the circumstances of the accident. If you were fully or partly at fault, your statutory benefits may be limited. Your entitlement to further compensation for more serious injuries (known as common law damages) may also reduce based on your level of responsibility.
If you were completely at fault for the accident, you will generally not be entitled to damages.
Determining liability after a motor accident can be complex. Obtaining legal advice can help protect your right to pursue the maximum compensation available for your injuries.
This article explains how CTP insurance works and the types of accidents that may allow an injured person to make a compensation claim.
What Is CTP Insurance?
Compulsory Third Party (CTP) insurance is mandatory for all registered motor vehicles used, or intended to be used, on public roads.
A vehicle owner cannot register a motor vehicle without obtaining CTP insurance. This insurance protects the owner against legal liability for injuries or death caused by the negligent use of the vehicle.
The State Insurance Regulatory Authority (SIRA) regulates and administers the CTP scheme.
CTP insurance applies to the relevant motor vehicle and covers injuries caused by its negligent use, whether the vehicle was driven by the registered owner or another person who had control of the vehicle.
The registered owner and/or driver may have legal liability for the accident, with insurance providing protection against these claims.
This ensures that an injured person may receive compensation in circumstances covered by the legislation, even where fault is difficult to determine. For example, a person injured in a collision with a stolen vehicle may still be able to make a claim if the vehicle was being driven negligently.
What Is a Motor Accident?
When people think of a motor accident, they often think of collisions involving two or more vehicles. However, many other incidents can result in injuries and may allow a person to claim compensation.
The Motor Accidents Injuries Act 2017 (NSW) defines a motor accident as:
“… an incident or accident involving the use or operation of a motor vehicle that causes the death of or injury to a person where the death or injury is a result of and is caused (whether or not as a result of a defect in the vehicle) during:”
- the driving of the vehicle;
- a collision, or action taken to avoid a collision, with the vehicle;
- the vehicle running out of control; or
- a dangerous situation caused by driving the vehicle, a collision, avoiding a collision, or the vehicle running out of control.
This broad definition means a person may be able to claim compensation for injuries caused by another person’s negligence, including situations involving an out-of-control or defective vehicle.
A claim may be available to:
- Drivers of motor vehicles, whether or not they own the vehicle;
- Passengers in motor vehicles;
- Motorcyclists and pillion passengers;
- Cyclists, pedestrians and other road users.
Claims may relate to accidents involving cars (including stolen, unidentified or unregistered vehicles), motorcycles, trucks, buses, trams and trains.
Children under 16 years old who live in New South Wales at the time of the accident may also be entitled to children’s special benefits. These benefits can cover expenses such as:
- Hospital treatment
- Medical expenses
- Rehabilitation
- Pharmacy expenses
- Respite care
- Attendant care
These benefits may apply regardless of who caused the accident.
A motor accident claim may also be available for people who witness an accident, family members who witness serious injuries or death, and dependants of injured persons.
Uninsured or Unidentified Motor Vehicles
A person may suffer injuries due to a negligent driver where the driver or vehicle cannot be identified, such as in a hit-and-run accident, or where the vehicle does not have insurance.
In these circumstances, an injured person may be able to make a claim against the Nominal Defendant.
The Nominal Defendant is a body established under the legislation and funded through vehicle registration contributions.
A person making a claim against the Nominal Defendant must complete appropriate searches and enquiries to demonstrate that the vehicle or driver cannot be identified.
Conclusion
A person may be entitled to compensation for injuries caused by a range of incidents involving the use of a motor vehicle, regardless of fault.
However, the benefits available to people who are completely at fault are limited by legislation. If an injured person contributed to the accident, their compensation may reduce proportionally based on their level of responsibility.
Determining liability after a motor vehicle accident can be complex and may require technical evidence or expert assistance.
Time limits apply to motor accident compensation claims. Seeking legal advice as soon as possible can help you understand your rights and protect your entitlement to compensation.