The NSW Government has announced a position paper on the reform of the CTP motor accident scheme.
The Government has decided to proceed with the implementation of ahybrid no fault scheme. This will introduce defined benefits for low severity injuries. It retains access to common law for the most seriously injured. For the first time the scheme will extend protection to at fault road users.
What the Government is proposing is the following: -
1. Approximately 90% of people injured in motor vehicle accidents will only be able to access a “defined benefits scheme”. This will include payments of weekly compensation and medical expenses to assist recovery in the early stages of injury.
2. This will include drivers who caused the accident.
3. Those with “low severity injuries” which will be 90% of claimants will not be able to pursue a common law claim. They will not be entitled to future loss of income, pain and suffering or care and assistance.
4. Those injured in car accidents will receive similar benefits to the current worker’s compensation scheme.
5. The remaining 10% or “seriously injured” car accident victims will be entitled to pursue a modified claim at common law. Thiswould include payment of an amount for pain and suffering and loss of income only.
The proposed changes significantly reduce the entitlements to compensation for those injured in motor vehicle accidents. At the same time compensation will be provided to approximately 7,000 people who are at fault or who caused the accident.
In short, anyone who sustains injury in a motor vehicle accident, whether or not it was your fault, will now be able to obtain limited compensation under the CTP scheme.
Only the most seriously injured, approximately 10%, will then be able to obtain modified common law damages to compensate for true loss of income and pain and suffering.
The amendments will reduce the compensation payable to motorists, passengers, bicycle riders and pedestrians injured in motor vehicle accidents.
The Government proposes to introduce these changes in or about July 2017.
If you've been in a car accident, the team at Garling & Co can help you. Browse our Motor Vehicle Accidents page for more information, or alternatively, get in touch today on 1300 851 201.
GARLING & CO 2019