CTP insurance covers all the personal injury benefits you’re entitled to after a motor vehicle accident in NSW. That’s lost wages, treatment costs, care costs, legal costs and more, depending on your situation.
The CTP has set out clear guidelines to assess the amount of these benefits. It’s classified injuries into two categories—threshold and above-threshold. If your injuries are above-threshold and you weren’t the driver at fault, you can lodge a CTP “common law claim” for a lump sum. This is the only way to get financial support after 12 months of your accident and the payments can be big.
A successful common law claim can give you long-term financial security for future lost income and ongoing care. Since personal injury benefits only go for 1 year, getting a lump sum is critical if you can’t go back to work or need medical treatment.
The claims process is complex and time limits apply, so it’s important to act fast. Before you apply, take the time to understand how it works to avoid the common pitfalls that can affect your claim. Getting legal advice early will help you out big time here.
Types of CTP Common Law Claims
When you make a CTP common law claim, there are two types of lump sum payments you can apply for: future income loss and non-economic loss (pain and suffering).
Future Income Loss
This payment covers the loss of earnings or the reduction in your ability to earn income due to your injuries to the date of retirement. For example, if you can only work part-time because of your injuries while you used to work full-time, your lump sum could be for the difference in income for the rest of your working life.
Let’s say Sarah, a 35-year-old teacher, was injured in a car accident that wasn’t her fault. Before the accident, Sarah taught full-time at a local high school for 12 years, earning $2,000 a week. After the accident, Sarah experienced significant back and neck pain that made it difficult for her to continue working full-time. She returned to work after 2 months of medical leave but could only manage part-time duties, working 3 days a week instead of 5.
Sarah’s claim would be calculated as follows:
Statutory Benefits: Sarah would first receive compensation for her time off work (2 months). Since her pre-accident weekly earnings were $2,000, her compensation for the 2 months off work (approximately 8 weeks) would be:
- 8 weeks x $2,000 = $16,000
- Superannuation (11%) = $1,760
- Total for the 8 weeks: $17,760
Future Income Loss: Sarah is now only working 3 days a week instead of 5, so her future income is reduced. Her new weekly earnings are $1,200 (3 days of $400 daily). The difference between her pre-accident weekly earnings ($2,000) and her current earnings ($1,200) is $800 per week.
Sarah would then claim a lump sum for the ongoing loss of earnings. The claim would estimate how much Sarah would have earned if she had been able to work full-time until her retirement at 65. Based on her current loss of $800 per week, Sarah’s future lost earnings could be around $320,000 by the time she retires.
Note: The final amount would be subject to adjustments for inflation and the severity of Sarah’s injury, but this gives an idea of how her future income loss would be calculated and the compensation she could receive to cover it.
Non-economic Loss (NEL)
Non-economic loss refers to compensation for the pain, suffering and loss of enjoyment of life you have experienced because of your injury. To qualify for a non-economic loss payout, your injury must be assessed as being over 10% whole person impairment (WPI). Therefore, it’s very important that your WPI assessment is thorough and includes all of your injuries.
Once your WPI is confirmed, the payout is calculated based on how much you have been affected compared to the “most extreme case” (MEC). MEC considers how an injury would affect your life overall and accounts for factors like age, type of injury and how your life will be affected by your injuries. The calculations for an NEL payout are subjective so it’s crucial to have a lawyer on your side who will get to know your circumstances and make the strongest case for you.
A key aspect of non-economic loss claims is getting your injuries assessed accurately. It’s easy to accept the insurer’s initial decision on the severity of your injuries and their impact. But this could undervalue your claim. If you try to handle your CTP common law claim for non-economic loss yourself, you’ll likely end up with a much lower payout than you deserve.
To give yourself the best chance of getting a fair and full payout it’s highly recommended you see a specialist CTP lawyer before you lodge your claim. At Wyatts, our CTP lawyers are experienced in personalising each case to highlight the extent of the impact your injuries have had on your life. We will ensure all relevant factors are presented so you get the best outcome.
A Step-by-Step Guide to Lodging a CTP Common Law Claim
Making a CTP common law claim for a lump sum is a big job. Unfortunately, there isn’t much clear guidance on the process and especially how to increase your chances of success. So, we’ve put together this step-by-step guide, which incorporates the best advice from our specialist CTP lawyers so you can feel confident in the process.
Step 1: Check If You’re Eligible
Firstly, you need to check if you can make a common law claim. You must meet two key criteria:
- Above-threshold injuries: If your injuries have been assessed as above threshold, you can claim for past and future loss of income.
Note SIRA has a limited list of doctors who are approved to do WPI assessments. Some doctors are known to provide lower assessments, which favour insurers.
To get a fair and accurate WPI assessment, consider getting help from a specialist CTP lawyer. Our team can guide you through the process so you don’t miss out on the compensation you deserve.
Step 2: When to Make Your CTP Common Law Claim
You can make a common law claim at any time after your accident. However, time limits apply, so it’s in your best interest to get started as soon as possible to avoid missing out on any potential compensation.
Step 3: How to Make Your CTP Common Law Claim
The application form for a CTP common law claim is available on SIRA’s website. The form doesn’t specify if you’re claiming for income loss or non-economic loss—it simply allows the insurer to assess if you’re entitled to one or both types of compensation.
While this form is a starting point, remembering correctly filling out and submitting this application is crucial. Small mistakes can delay the process or even jeopardise your claim. So, seek legal advice before submitting your claim is recommended.
Step 4: Get Help
CTP common law claims are complex and the lump sum is often big. Don’t give up if your claim is denied or if you feel the offer is too low.
Talk to one of our specialist CTP lawyers today. We offer free initial advice and our team will guide you through the process so you’re informed and increase your chances of winning.
Get in touch today.
Common Reasons CTP Common Law Claims Are Rejected
If your CTP common law claim has been rejected, it’s important to know why. Four main reasons, but each is often avoidable or manageable with the right help.
Here’s a breakdown of the common reasons and how you can fix them:
You Were At Fault in the Accident
You’re not entitled to a lump sum if you were at fault. But in some cases, liability is shared between the parties involved—this is called “contributory negligence.”
If it’s determined both parties were partially at fault you may still be able to claim, but the payment will be reduced to reflect your level of responsibility. If this is you, having a CTP lawyer argue your case can make a big difference to your outcome.
The Insurer Said Your Injuries Were Minor (Threshold)
If the insurer says your injuries were minor (threshold), they may reject your claim for a lump sum. But you can challenge this. You may be eligible for a reassessment if your injuries weren’t fully understood at the time of the original assessment—such as missed physical injuries, psychological conditions or additional injuries that developed afterward (e.g., back pain from changed posture).
This could mean you’re entitled to a lump sum. A CTP lawyer can help you get the evidence to support your claim for reassessment.
You Missed the Deadline
There are time limits for making a CTP claim. You have three months to lodge your application for personal injury benefits and three years to lodge your common law claim for damages. The deadline for lodging your claim is generous but still important to meet.
If you missed the deadline but have a reasonable excuse, our CTP lawyers can help you provide a valid excuse to the insurer, which may allow you to still make your claim.
When to Use a CTP Claim Lawyer
You can technically lodge your own CTP common law claim but it’s recommended you get legal representation. Insurers have lawyers and experts working on your case to minimize their payout. To give yourself the best chance of getting fair compensation, having a CTP lawyer on your side is essential. We’ll make sure your claim is properly prepared and presented in the best possible light so you get everything you’re entitled to.
At Wyatts Lawyers, we operate on a no-win, no-fee basis and have a 99% success rate. We’ll take the time to talk to you about your case and work hard to get the best outcome. If you’re not sure what you’re entitled to or want advice on how to lodge your CTP claim, call our motor vehicle accident lawyers today at 1800 773 880.
