Last week the NSW State Government announced a complete overhaul of the legislation surrounding motor vehicle accident compensation. The proposed changes will see Compulsory Third Party (CTP) Motor Accident Insurance, which has been in place since 1942, replaced with a hybrid no-fault scheme as early as July 2017. The new scheme will introduce a number of changes, significantly affecting your rights for compensation in the event of a motor vehicle accident on NSW roads.
So what are the changes and how will they affect you? We’ll take you through what every person driving on NSW roads needs to know.
The proposed hybrid no-fault scheme will introduce a number of major changes that directly affect your rights to motor vehicle accident compensation. The most significant changes include:
- Defined benefits for low severity injuries
The new scheme will introduce a clearly defined benefit regime for those with low severity injuries. Limitations will be placed on income benefits as well as medical and care expenses. Compensation will be specified and capped at a certain amount, available only within prescribed time frames. - Protection for at-fault road users
For the first time, protection will be extended to at-fault road users. This represents an additional 7,000 road users per year. The new scheme recognises all injured people should have access to benefits regardless of fault, with limitations and exclusions in place where the injured road user has engaged in unlawful activity. - Dispute Resolution
Independent review and dispute resolution will make resolving disputes simpler and faster. - Benefits for pedestrians injured by bicycle riders
Some protection will be extended to pedestrians injured by bicycle riders under certain circumstances.
How will the changes affect you?
The changes will mostly affect those who sustain low severity injuries in a motor vehicle accident. Under the proposed changes, those severely injured (greater than 10% whole person impairment) in a motor vehicle accident will still have access to common law where the injury was caused by the fault of another vehicle.
The changes represent both positive and potentially negative outcomes for those injured in a motor vehicle accident. For previously unprotected persons like at-fault drivers and pedestrians injured by bicycles, the changes are a positive step, as is the timely payment of benefits and simple, fast dispute resolution.
While defined benefits aim to reduce claims fraud it is clear that if you do not have at least an 11% whole person impairment your rights will be severely eroded. In some cases the defined compensation for such drivers may be lacking and additional compensation may be determined by a fairness test.
What should you do?
An expert reference panel will put together a new legislative scheme based on the proposed changes. Subject to Parliamentary approval, the new scheme could come into effect from July 2017 with transitional arrangements in place during the first few years of the new scheme.
As is the case with the law, it’s never quite black and white so it’s important to speak to a professional to determine how the changes will impact upon your rights to motor vehicle compensation in NSW. We provide free consultations with our Motor Vehicle Specialists who can offer more information and advise the best course of action based on your individual case.
The proposed changes will affect all those who use NSW roads so be sure to share these important changes with your friends and family whether they’re a driver, passenger, cyclist or pedestrian.
Find out more
Contact us today for more information on the proposed changes.
If you have been injured in a motor vehicle accident you may have a claim for compensation if you are injured due to another driver’s negligence. You need to act now before the new laws come into effect.
Taylor & Scott is Sydney’s leading and most experienced car accident and personal injury law firm. We have over a century of legal experience helping clients obtain the injury compensation they deserve.
One of our experienced lawyers will be happy to provide a no-obligation free initial assessment of your case.
At Taylor & Scott “We Care For You”.
