Compulsory third party insurance changes could fail injured workers

LEGAL experts have warned the NSW government’s proposed CTP insurance changes could cost injured blue-collar workers their futures.

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LEGAL experts have warned the NSW government’s proposed CTP insurance changes could cost injured blue-collar workers their futures.

The grim prediction came from the Law Society of NSW, which highlighted the fact that under the changes, accident victims whose injuries do not meet a threshold of 10 per cent whole person impairment will no longer have the right to sue for compensation for future medical treatment and economic loss, regardless of who was at fault in the accident.

Instead they will be transferred onto a workers’ compensation-type scheme with a maximum cover of five years.

Gary Ulman, president of the NSW Law Society.

Only those with catastrophic injuries will be entitled to a lump sum for lifetime care and support. The cost-cutting measure is the government’s response to a $400 million spike in fraudulent ­insurance claims over recent years and rising Compulsory Third Party insurance green slip costs.

“Drivers who are at fault will benefit at the expense of the innocent,” Gary Ulman, president of the NSW Law Society, said.

“With upwards of 7000 at-fault drivers potentially accessing the scheme each year, a blowout in costs of another kind is very likely.”

Most affected would be not-at-fault drivers with ongoing injuries preventing them from continuing their usual work, yet who have less than 10 per cent whole body impairment, Mr Ulman said.

A case in reality is Andrew, who was injured in a car accident in 2013. It was not his fault, but the right-handed wood machinist suffered an injury to his right shoulder, requiring reconstruction surgery.

Although only left with a 4 per cent whole person impairment, he can no longer do heavy work and is now a part-time handyman.

In his mid-40s he had over 20 years of working life ahead of him. An independent assessor awarded Andrew a lump sum of $333,000 for current and future medical costs and current and future economic loss in wages and superannuation.

Under the proposed new scheme, he would lose payment for future treatment, loss of ­income and super, leaving him with just $20,395.12.

“It’s tough enough as it is managing on what I got,” Andrew said.

A Galaxy survey of 1000 people commissioned by the Law Society found that only one in four respondents agreed with the government proposal to impose limits on compensation and medical payments in order to reduce premiums.

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