Time limit within which to make a CTP claim halved to 3 months

As of 1st December, 2017 a new Compulsory Third Party (CTP) Scheme commenced in New South Wales. This new legislation is called the Motor Accident Injuries Act 2017.

This Act is part of the evolution of our injury compensation laws, which I suspect will result in a universal no-fault injury compensation scheme. New Zealand has had such a scheme for many years.

The new Act contains many significant changes, a number of which are similar in effect to changes made to the workers’ compensation laws introduced in 2012. However, there are three changes that are particularly important to note:

  • Firstly, the time within which a claim must be made has been reduced by half, to now be within 3 months of an accident occurring from 1st December. Further, if a claim is made for statutory weekly compensation for loss of income, but is not made within 28 days after the accident, then no such compensation is payable in respect of any period before the claim is made.
  • Secondly, a driver at fault who was earning an income at the time of an accident that occurs from 1st December and suffers a loss of income during the 26-week period after the accident because of injuries sustained, is entitled to statutory weekly compensation for such loss.
  • Thirdly, a driver at fault is entitled to claim treatment expenses for up to 26 weeks after an accident occurring from 1st December, where such treatment was reasonable and necessary to treat injuries sustained in the accident.

Claim resolution Process

If liability has been accepted by the CTP insurer, a typical motor vehicle accident claim will follow the ‘step by step’ process shown above.

Please do not hesitate to contact me should you have any questions relating to these changes.

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