By Michael Singh · 7 Min ReadNSW'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.