23/02/2024

Applying for a Common Law Damages Claim in the New South Wales CTP Scheme

Common Law Damages Claim in the New South Wales CTP Scheme

If you are not at fault and have suffered more than a minor injury in a motor vehicle accident after December 2017, you may be entitled to make a common law damages claim under Part 4 of the Motor Accident Injuries Act (NSW) 2017. 

To be eligible, you must satisfy that:

  • You have suffered more than minor injuries as defined by the Act and the Motor Accident Guidelines;
  • You were not wholly at-fault for causing the accident.

What you can claim for

A claim for damages is to be made separately from a claim for statutory benefits.  After the changes in December 2017, medical treatment and care expenses no longer form part of a damages claim. 

There are now two parts to a CTP common law lump sum payout:

  • Damages for economic loss;
  • Damages for non-economic loss.

Damages for economic loss involves a loss of past and future income.  You need to show that you have suffered a loss of income or earning capacity to be entitled to a claim for past and future economic loss.  

The maximum amount for past and future loss of earnings/earning is capped at 2.5 x average weekly earnings which is $3,853 net per week.

In order to claim for future economic loss, you need to satisfy the court of Commission of your most likely future circumstances but for the injury due to the motor vehicle accident.

If your physical or psychological injuries are assessed at over 10% Whole Person Impairment, you may also be entitled to make a claim for non-economic loss.

The amount of damages may be reduced if you were deemed partly responsible for causing the accident by being “contributorily negligent”.  Examples include failing to keep a proper lookout or failing to wear a seatbelt or helmet.

When you can apply for a claim for common law damages

A claim for common law damages must be made within three years from the date of the motor vehicle accident.

If your injuries are assessed as 10% whole person impairment or less, a claim must be made between 20 months and three years after the accident.

If your injuries are assessed as more than 10% whole person impairment, you can make the claim any time within three years from the date of accident.

Get in touch to find out more HERE … or call 02 8764 1776
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