A fairer and more affordable compulsory third-party (CTP) insurance scheme is now being implemented in New South Wales, which will see state motorists enjoy more coverage, faster claims processing, and more affordable insurance premiums.
Under the new scheme, as set by the Motor Accident Injuries Act 2017, injured NSW road users will be provided with defined benefits for medical treatment and care; while the most seriously injured will continue to receive common-law entitlements. And unlike in the old scheme where a claim would take an average three to five years to be settled, the new scheme will see benefits commence soon after the claim is lodged.
Insurance Council CEO Rob Whelan said the new scheme is an important landmark for all NSW road users where “anyone injured in a road accident will receive benefits ... regardless of fault,” and which will see “about 7,000 people injured in a motor accident who are considered to be at-fault” be entitled to benefits.
The NSW government said the new CTP scheme will reduce average premiums and will ensure that more funds will be used for addressing the needs of crash victims in need of medical treatment and care.
“It is anticipated that the new scheme design will reduce opportunities for claims fraud and exaggeration, which can drive up premiums,” Whelan said. “The ICA and its member companies continue to support the NSW CTP Fraud Taskforce, sharing expertise to keep the system financially sustainable and fair for everyone.”
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