The proposed changes to the CTP Scheme will result in up to 90% of injured motorists having to tackle claims by themselves without legal assistance.
This is a significant issue as this will likely be the injured motorists first motor vehicle accident claim but it is certainly not the insurers first claim. The insurers know how to get around claims and how to delay them, the will also likely have a highly experienced legal team which will no doubt put the unassisted injured motorist at a disadvantage.
These changes are loosely based on the Victorian CTP System. The Victorian system has a single government insurer that deals with all claims and pays statutory benefits to the injured motorists. However, the NSW changes are privately underwritten which means that it is up to the big insurers to make the call on who gets paid and when. It is easy to see how this could turn into a money making scheme for the big insurers.
The lack of an independent body is seriously concerning as 90% of injured motorists who have to tackle these claims by themselves will likely be at a loss when the insurer declines their claim. Which under this scheme may become a more frequent occurrence than it already is.
As 90% of injured motorists will not be compensated for wage loss or medical treatment beyond a short specified period of time many injured people will be looking to Centrelink and family to support their financial needs.
To read more on this issue click the link below:
Garling & Co 2016