If you’ve been injured in a car accident, it can have a devastating effect on your life. Seeking car accident compensation is an important first step on the road to recovery.

In this article, we take a look at what you can expect to receive from a car accident compensation claim.

Recent changes to CTP compensation payouts in NSW

Late last year, a new set of laws came into play for CTP compensation payouts. The new system provides a safety net of payments for everyone injured in a car accident, regardless of who was at fault.

The new laws apply for people injured in car accidents from 1 December, 2017. This includes drivers, motorcyclists, passengers, pedestrians and cyclists.

Benefits include compensation for loss of earnings, medical expenses, rehabilitation treatment and funeral expenses. You’ll need to lodge a claim within three months after the accident to receive the benefits.

Weekly payments for loss of earnings

The statutory weekly payments for loss of earnings are worked out as a percentage of your pre-accident income. Claims for statutory payments must be made within three months of the accident.

For the first 13 weeks of payments, you can claim up to 95% of your pre-accident income, while payments for weeks 14-26 may be up to 80% of your income if you’re incapacitated and unable to work.

The motor vehicle accident payouts will end after week 26 if your injuries are considered to be “minor”, or if you were at fault for the accident. Minor injuries include soft tissue injuries and minor mental illnesses.

However, the weekly payments for loss of earnings will continue for people with serious injuries and who were not at fault. After two years, you will need to be pursuing a claim for common law damages for the payments to continue.

Medical expenses and rehabilitation treatment

The new statutory payments also include payments for the cost of medical treatment. This includes pharmaceutical expenses and rehabilitation treatment, as well as the cost of travelling to and from appointments.

Under the new system, medical expenses can no longer be included in claims for common law damages.

Claims for common law damages

For people who were not at fault for the accident and sustained serious injuries, you can also make a common law claim for a lump sum compensation payment. However, there are limits placed on how much you claim.

For the loss of past and future earnings, the maximum cap is worked out at 2.5 times the average weekly wage, which is currently $3,853 gross per week.

Similarly, for pain and suffering (non-economic loss) the current cap is $527,000 as of 1 October, 2017. A claim for pain and suffering can only be made if your whole person impairment is 10% or over.

Claims for common law damages must be made within three years of the motor vehicle accident. However, a claim can’t be made for 20 months after the accident unless the person’s injuries are judged to be at 10% whole person impairment or greater.

Talk to senior car accident compensation lawyers

The laws relating to car accident compensation are complex and it is important to get the right advice on what to do. Time limits apply to claims for motor vehicle accident compensation payouts, so it’s important to talk to a lawyer as soon as possible.

If you’re looking to make a claim for personal injury, speak to our experienced team of motor vehicle compensation lawyers today.