HOW TO SECURE FULL COMPENSATION AFTER A MOTOR VEHICLE ACCIDENT – UNDERSTANDING YOUR INSURANCE OPTIONS

WHAT INSURANCE OPTIONS ARE AVAILABLE AFTER A MOTOR VEHICLE ACCIDENT IN NSW?

In the aftermath of a motor vehicle accident, there are several types of insurance that could be relevant to your circumstances. These include:

• Compulsory Third Party (CTP) Insurance – This is mandatory for all registerable vehicles in NSW and covers injuries resulting from a motor vehicle accident. It provides statutory benefits for weekly payments, treatment & rehabilitation, home care on a no-fault basis, and a lump sum payment for serious injuries above a certain threshold if the injured person was not at fault for the accident.

• Workers Compensation – If you were injured by a motor vehicle or were travelling in a motor vehicle during the course of your employment, you may be entitled to claim workers compensation benefits. Workers Compensation provides statutory benefits for weekly payments, treatment & rehabilitation, home care and a permanent impairment benefit on a no-fault basis (injury thresholds apply). A lump sum known as work injury damages is available for serious injuries (injury thresholds also apply) where the accident occurred because of an employer’s negligence.

• Total and Permanent Disability (TPD) Insurance – If you are unable to return to work due to the injuries sustained in the motor accident, TPD insurance can provide a lump sum insurance benefit pay out. This is an optional cover but commonly found as a benefit associated with an industry superannuation fund. TPD cover can also be taken out as a private stand-alone insurance policy, so it is not exclusive to industry superannuation funds.

• Private Insurance Policies – Some people may have access to private insurance policies such as income protection, trauma or membership based policies such as those offered by Bicycle NSW. Such insurance policies can offer benefits either in conjunction with, or in addition to CTP and workers compensation benefits. As these are optional coverages not mandated by legislation, it is important that injured people promptly check the terms and conditions of their policy to determine the benefits applicable, the claim criteria and any mandatory timeframes that need to be observed to ensure their entitlements are protected.

Each of these options can play a role in your recovery process and compensation entitlement. Understanding how they interact is key to maximising your return to health, return to life and compensation pay out.

HOW DO MULTIPLE INSURANCE POLICIES WORK TOGETHER?

In many cases, people injured in NSW motor vehicle accidents can access multiple forms of insurance. Here is how they typically work together:

• CTP & Workers Compensation – In circumstances where a person has rights to claim both CTP and workers compensation statutory benefits in NSW, a claim should be lodged on both the workers compensation and CTP insurer. This ensures that both insurers are aware of the claim and all procedural requirements are met. The workers compensation insurer will then manage the claim under the NSW workers compensation scheme. There is no concurrent benefit for CTP and workers compensation. However, when the workers compensation claim concludes, the statutory benefits claim can be transferred to the CTP insurer for ongoing management of treatment and care if the injuries are significant and meet the requisite injury thresholds. 

A person may also have a right to claim a lump sum damages pay out under the workers compensation scheme and/or under the CTP scheme. Due to the technicalities associated with both claims, it is important that injured people seek legal advice to determine which claim will result in a larger compensation pay out if successful.

• TPD Insurance – As mentioned above, TPD policies are most commonly found as part of an industry superannuation fund offering, however private TPD insurance policies are also available in the market. If a valid TPD policy exists, a TPD benefit is typically payable in addition to a workers compensation and/or CTP insurance pay out.

• Private Insurance Policies – Private insurance policies offer a range of different benefits and coverages. Each policy has its own unique terms and conditions, so it is essential to review the policy taking into account your personal circumstances.

WHAT TO DO IF YOU ARE INJURED IN A MOTOR VEHICLE ACCIDENT

If you have been injured in a motor vehicle accident, following these steps can help protect you and ensure you secure the compensation you deserve:

• Seek Immediate Medical Attention – Your health is the top priority. Ensure you receive the proper emergency medical care and keep records of all injuries and treatment.

• Report the Incident – Notify the Police within 28 days, and gather details of the accident, including witness statements and any available footage (e.g., dashcam or CCTV).

• Consult an Accredited Specialist – Legal advice is crucial in navigating the complexities of multiple insurance claims. An Accredited Specialist in Personal Injury Law will help you understand your rights and ensure that all potential insurance policies are considered. It is important to note that workers compensation and CTP claims have strict time limits for claim lodgement, so it is best to obtain legal advice promptly.

• Keep Detailed Records – Document your injuries, medical treatments, and any financial losses caused by the accident. This will be important for your compensation claim.

COMMON MISTAKES TO AVOID

Common mistakes that people often make when involved in a motor vehicle accident include:

• Not exploring all available insurance options: Many people involved in motor vehicle accidents mistakenly believe that they are not permitted to make more than one insurance claim. Always make sure to check private insurance policies as typically, these policies can work in conjunction with CTP and Workers Compensation, and may even provide additional benefits.

• Delaying medical treatment: Delays in seeking medical care can result in disagreements with insurance companies about whether your injuries were caused by a particular accident or were pre-existing. Where possible, be sure to alert your treatment providers to each and every injury sustained in your accident.

• Assuming CTP alone will cover everything: While CTP insurance is essential, it may not cover all aspects of your recovery. Pre-existing conditions, late onset injuries or subsequent unrelated conditions will commonly not be covered as part of a CTP claim. Attempting to claim compensation where there is no clear link to the motor accident can result in unnecessary disputes with insurers.

HOW CAN A LAWYER HELP? 

Navigating multiple insurance policies can be overwhelming, particularly while you are trying to focus on recovering from being injured in an accident. An Accredited Specialist in Personal Injury Law will guide you through the process, ensuring all available options are explored.

At Advantage Legal, we take a ‘rehabilitation-first’ approach, working closely with medical professionals to secure the best health outcomes for our clients in addition to maximising your compensation. Further, as a client of Advantage Legal, you will receive:

• Expert Advice in Plain Language: We will help you understand the nuances of each insurance policy and how they can work together to maximize your compensation.

• Unrivalled Representation: We fight to ensure that insurers fulfil their obligations and provide you with the benefits and compensation you deserve.

• Peace of Mind: We handle all paperwork, liaise with insurers, and manage the legal process so you can focus on your recovery.