The CTP reform bill was announced yesterday and there will be significant changes to the current system, but only for injuries sustained in accidents after the bill is passed.
At Fault Injuries
The reform will allow all injured motorists, regardless of who was at fault, to obtain benefits for loss of income, medical expenses, and commercial attendant care for a period of 6 months similar to the current workers’ compensation scheme.
Not at Fault Moderate Injury (less than 11% WPI)
If the injured person was not at fault and has suffered moderate injuries reflected in a whole person impairment (WPI) of 11% or less they will be entitled to two years of weekly income benefits and payment of medical expenses and attendant care needs, much the same as the current workers’ compensation scheme. If the injured motorist requires assistance after the two year cut off they can make a common law claim for past and future economic loss. The maximum period such injured motorists can receive weekly benefits will be 3 years.
A common law claim, if made within 3 years will allow payments for past and future loss of income only. Once the common law claim settles no further weekly benefits will be paid.
Medical expenses and care needs will however continue to be paid, if reasonably necessary.
Not At Fault Serious Injury (WPI 11% or greater)
Seriously injured motorists with a WPI of 11% or greater will receive the same benefits as moderately injured motorists. However, in addition to these benefits, a seriously injured person who pursues a common law claim will be entitled to up to 5 years weekly income payments until their common law claim settles. They may be able to receive medical expenses benefits, as well as commercial attendant care benefits for life.
Within 3 years of the accident seriously injured motorist can make a common law claim for compensation in relation to past and future loss and non-economic loss for pain and suffering.
The idea behind the reform is to make benefits available quickly in order to reduce financial hardship and allow injured motorists to concentrate on their recovery and getting back to their pre-injury life style.
The new CTP reform is set to save NSW motorists approximately $120 off their Green Slip, and it is expected that on average premiums will drop from $650 to $528 in NSW. This is a win overall as it will not only benefit motorists but also reduce the super profit that insurers boasted prior to this reform.