By Michael Singh · 7 Min Read · NSW's CTP scheme — governed by the Motor Accidents Injuries Act 2017 (MAIA) — operates on a two-tier system. Tier one is statutory benefits, available to everyone regardless of fault. Tier two is common law damages, available only to those with more serious injuries who can prove negligence.
Tier one: statutory benefits
Statutory benefits are available to any person injured in a NSW road accident regardless of who caused it. You don't need to prove fault. Benefits include:
- Medical and hospital treatment — reasonable and necessary treatment costs
- Rehabilitation — physiotherapy, occupational therapy, and related services
- Income replacement — 85% of your pre-accident weekly earnings, capped at approximately $7,500 per week (indexed annually)
How long you receive these benefits depends on whether your injury is classified as minor or non-minor. Minor injuries receive statutory benefits for up to 26 weeks from the accident date. Non-minor injuries may receive benefits for longer while the claim resolves.
The minor/non-minor distinction
Under MAIA, every injury is classified as either minor or non-minor. This classification controls your benefit duration and your access to common law damages.
- Minor injury — soft tissue injuries (sprains, strains, whiplash-type damage) and minor psychological injuries.
- Non-minor injury — fractures, structural spinal damage (disc prolapse, disc bulge with nerve root compression), nerve damage, burns, lacerations requiring surgery, and serious psychological injury.
The CTP insurer makes an initial classification based on your medical records. You have the right to dispute that classification through SIRA's dispute resolution process.
Tier two: common law damages
To pursue common law damages you must meet three requirements:
- Your injury must be non-minor
- You must be able to prove the at-fault driver's negligence
- For general damages (pain and suffering), your injury must be assessed at 10% or more Whole Person Impairment (WPI)
General damages for pain and suffering require a 10% WPI assessment by an independent medical examiner. There is no WPI threshold for economic loss — if you can prove negligence and lost income, you can pursue that component even with a lower WPI.
Common law damages can include past and future medical expenses, past and future economic loss, cost of care and assistance, and general damages for pain, suffering and loss of amenity.
Can you receive both?
Yes. Statutory benefits and common law are separate pathways. You receive statutory benefits while your common law claim is being assessed. Settling your statutory entitlement does not extinguish your common law claim — but accepting a combined settlement before you understand your full prognosis can significantly undervalue it.
Frequently Asked Questions
Who can access statutory CTP benefits after a NSW car accident?
Almost everyone injured in a NSW road accident is eligible for statutory benefits under the Motor Accidents Injuries Act 2017, regardless of fault — including at-fault drivers (though at-fault claimants receive reduced entitlements). Statutory benefits cover reasonable and necessary medical treatment costs, weekly income support (up to 95% of pre-accident earnings for the first 13 weeks, then 80% up to a SIRA-set cap), and in some cases rehabilitation and attendant care expenses. Benefits begin from the date of the accident and continue for the duration of your injury if classified as non-minor, or for up to 26 weeks if classified as minor.
What is the 10% whole person impairment threshold for a NSW common law claim?
To access common law damages — a lump-sum payment for pain, suffering, and future losses — your injuries must reach at least 10% whole person impairment (WPI), assessed by a SIRA-accredited medical assessor. This threshold applies to the physical injury component. Psychological injury is assessed separately and against a higher threshold for non-at-fault claimants. Injuries below 10% WPI are compensable only through statutory benefits. The impairment assessment is a formal process where the outcome significantly affects your total entitlement, so seeking legal and medical advice before any assessment is strongly recommended.
When can I access common law compensation after a NSW car accident?
You can only access common law damages after your injury stabilises and SIRA issues a certificate of determination. This certificate is typically issued approximately 20 months after the accident, though it may be issued earlier in exceptional circumstances. Before commencing court proceedings, you must first attempt settlement through an approved dispute resolution process. The majority of NSW common law claims settle at this stage without proceeding to court. Once you accept a common law settlement, your statutory benefit payments generally cease, so the timing of any settlement decision requires careful legal advice.