The NSW government is proposing radical changes to CTP insurance that will make it more difficult for victims of motor vehicle accidents to access payments.
The proposed amendments to the green slip scheme will mean accident victims whose whole body impairment is assessed to be 10% or less will be moved onto a defined benefit scheme. Those deemed to be seriously injured will receive lump sum payments.
For those under the 10% threshold, their insurer – not their doctor – will have the authority to direct their medical treatments. Their right to legal representation will be removed, and they may be forced to rely on welfare when their benefits are cut after five years.
Some of the injuries that fall under the 10% threshold can seriously limit an individual’s ability to work, including pelvic fractures and post-traumatic stress disorder. The Law Society of NSW said that the scheme, announced on 29 June, would reduce payments for up to 90% of accident victims while supporting about 7,000 “at fault” drivers.
James Chrara, General Manager of Shine Lawyers NSW, has criticised the proposed overhaul. He advised that the average NSW resident stands to lose out significantly if they are injured in a motor vehicle accident.
Mr. Chrara said that he would love to see a review of these proposed changes as soon as possible.
“Shine Lawyers would appreciate the opportunity to work closer with the government to come to a solution that preserves people’s rights, while achieving the government’s intended objectives to ensure all parties are doing what is best for the people of NSW,”
Victor Dominello, the minister for Better Regulation, has said that the premiums NSW motorists are paying are too high.
But lawyers have argued that the proposal is likely to leave those with moderate injuries who are unable to work out in the cold, and cost those involved in motor vehicle accidents and their families a lot more in the long run.
The website https://saveourctp.com has more information on the changes and a petition to sign.
Further information on the legal implications can also be found on the Law Society website.
Written by Shine Lawyers. Last modified: September 6, 2018.