How will your workers compensation entitlements be affected under the new CTP scheme?
In New South Wales a new CTP scheme came into force on 1 December 2017. It is the scheme that provides for the entitlements payable to those injured in accidents involving motor vehicles.
The scheme makes a significant change to the entitlements for a person injured and who was at work at the time of the injury (the Working Injured). Under the previous scheme, the Working Injured in the first instance could make both a worker’s compensation claim AND a CTP claim for the same loss of income. If the person then settled their CTP claim, the workers compensation insurer would be paid back any such compensation paid by it.
Under the new scheme, the Working Injured are not entitled to claim any weekly payments for loss of income, treatment or care, if they are entitled to such benefits under the NSW worker’s compensation scheme.
Accordingly, the CTP insurer may refuse to pay weekly payments and expenses for treatment and care if:
the claimant has lodged a worker’s compensation claim and that claim has been accepted; or,
the claimant fails to make a claim for workers compensation, having reasonably been requested to do so by the CTP insurer.
Tai is a 22-year-old carpentry apprentice in her second year of employment as such. She finishes a job with her boss at Raymond Terrace at 11 AM, and together with her boss proceeds to travel in the company ute to the next job site at Morpeth. On the way, while in the left-hand lane of a two lane road, the driver of a Volvo car in the right-hand lane causes his car to veer into the left-hand lane, colliding with the company ute. Tai injures her shoulder and is unable to work. She lodges a CTP claim with the CTP insurer of the Volvo claiming weekly benefits as compensation for her loss of income. The CTP insurer requires Tai to lodge a workers’ compensation claim for such benefits. She refuses to do so, and as a result, loses the entitlement to such benefits from both the CTP and workers’ compensations insurers. However, 6 weeks later and still unable to work as a result of her injuries, she lodges a workers’ compensation claim, and then becomes entitled to weekly benefits under the workers compensation scheme from the date of lodgement.
If you have any questions, please do not hesitate to contact us.