Fraud in the CTP system

CTP Fraud

CTP Insurance Fraud

The compulsory third party (CTP) insurance system in New South Wales is designed to cover drivers in the event of injuries cause by motor vehicle accidents.

Fraud may be perpetrated by claimants, vehicle owners or service providers.  Fraudulent actions can include exaggeration of injuries, providing false and misleading information, staging accidents, lying about a claim such as not disclosing pre-existing medical conditions to an insurer, government authority, health professional or lawyer.

Division 6.6 of the Motor Accident Injuries Act 2017 deals with the issue fraud in relation to CTP claims.  Sections 6.40 and 6.41 specifies that a person who makes false or misleading claims or fraud in motor accidents are liable for 500 penalty units or 2 years of imprisonment, or both.

Furthermore, Part 4AA of the Crimes Act 1900 carries substantial penalties of imprisonment for fraud.

CTP Fraud

We at Alliance Compensation & Litigation Lawyers have a paramount duty to the court in the administration of justice under Section 3 of the Legal Profession Unform Law Australian Solicitors’ Conduct Rules 2015.  The most fundamental ethical obligation is that a lawyer cannot mislead the court.  Section 19 provides that a solicitor must not deceive or knowingly or recklessly mislead the court.

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