Before 1 December 2017
In brief
As a lawyer acting we expect you to support the objects of fair and timely resolution of claims and promote the recovery of claimants by reducing unnecessary delays and disputes.
You also need to be aware of your responsibilities regarding:
- claims cost disclosure: from 1 October 2015, any solicitor representing a claimant with a motor accident injury claim must provide us with a breakdown of costs for that claim (see 'Fees and invoicing' below) when it is finalised. Effective December 2023 all users will be required to set up Microsoft Authentication following the Final User Guide: New Security Control for PIR.
- disputes and reviews.
- arranging medico legal and neuropsychological assessments.
As the regulator of motor accidents insurers in NSW we work to ensure that all insurers comply with their legislative obligations and any relevant guidelines. If you believe an insurer has breached these obligations, let us know.
Forms you might need
Publications you might need
- Neuropsychological assessment guidelines (to help plan an assessment)
- Neuropsychological assessment fact sheet for solicitors, CTP insurers and LTCS scheme staff
- Neuropsychological assessment fact sheet for injured people, relatives and significant others
Fees and invoicing
The Motor Accidents Compensation Regulation 2020 place limits on the fees, costs and charges for a range of service associated with motor accident personal injury claims.
These services can include:
- legal costs (it should be noted that fee limits do not apply in all cases)
- medico-legal assessment services
- fees payable for treatment (included on the Australian Medical Association list of medical services)
- travel costs
The Motor Accidents Compensation Regulation 2020 commenced on 1 September 2020 and replaced the Motor Accidents Compensation Regulation 2015. It applies to all motor accidents that occurred from 5 October 1999 to 30 November 2017.
Changes to legal fees
In 2016, the Motor Accidents Compensation Regulation 2015 was amended by the Motor Accidents Compensation Amendment (Claims) Regulation 2016 to cap legal costs for motor accident injury claims made on or after 1 November 2016, regardless of a prior costs agreement.
Those changes included:
- Prohibit contracting out of maximum solicitor-client costs for claims for a settlement or award of not more than $50,000.
- Protect the first $50,000 of a settlement or award from solicitor-client costs. (This means that the maximum solicitor-client costs cannot be more than party-party costs plus the difference between the settlement/award and $50,000).
- Limit legal costs to $5,000 for claims made by children under 18 years of age where the settlement or award amount is not more than $25,000 or if the same legal practice is bringing a claim on behalf of another occupant of the same vehicle.
- Limit legal costs to $10,000 for claims made by children under 18 years of age where the settlement or award amount is between $25,000 and $50,000.
In 2020, the Motor Accidents Compensation Regulation 2020 introduced two further changes:
- Legal costs and medico-legal fees under Schedules 1 and 2 of the Regulation will now be indexed annually in line with the Consumer Price Index (CPI). The maximum amounts for legal costs and medico-legal fees will be adjusted on 1 October each year, using the CPI number for the June quarter preceding the adjustment year and apply for a period of 12 months.
- Insurers exempt from certain contracting out provisions. Under new clause 8(6) of the Regulation, insurers can now contract out of regulated maximums in Schedule 1 in circumstances where the amount paid in resolution of the claim by way of settlement or an award of damages is $50,000 or less. Previously this was restricted to damages amounts of more than $50,000.
Maximum costs for legal services
Except as otherwise provided in Part 2 of the Motor Accidents Compensation Regulation 2020, Schedule 1 to the Regulation sets out the maximum costs for legal services. Schedule 2 of the Regulation sets out the maximum fees for medico-legal services. From 1 October 2020, the maximum legal costs and medico-legal fees will be indexed each year in line with inflation. See the maximum costs that apply from 1 October 2021– 30 September 2022.
Costs determined by reference to certain stages in the matter
Table A | Fees for 1 October 2020 - 30 September 2021 | Fees for 1 October 2021 - 30 September 2022 |
---|---|---|
Stage 1 | ||
For assistance in completing an accident notification form (except, in respect of an Australian legal practitioner acting for a claimant, in so far as the assistance forms part of stage 2) | NIL | NIL |
Stage 2 | ||
From the acceptance of the retainer to the preparation and service of a notice of claim under section 72 of the Act (including the provision of all relevant particulars about the claim to the insurer, even if those particulars are requested after the claim is served)— | ||
(a) in the case of an Australian legal practitioner acting for a claimant | $292 | $301 |
(b) in the case of an Australian legal practitioner acting for an insurer | NIL | NIL |
Stage 3 | ||
From service of the notice of claim under section 72 of the Act to the preparation and service of a response to the insurer’s offer of settlement under section 82 of the Act— | ||
(a) in the case of an Australian legal practitioner acting for a claimant | $432 | $445 |
(b) in the case of an Australian legal practitioner acting for an insurer | NIL | NIL |
Stage 4 | ||
If resolution of the claim occurs without the issue of a certificate under section 94 of the Act—from service of the response to the insurer’s offer of settlement under section 82 of the Act to resolution of the claim (in addition to the $746 specified for stages 2 and 3 if chargeable)— | ||
(a) if the amount to be paid in resolution of the claim (the resolution amount) is not more than $20,000 and the insurer wholly admitted liability for the claim | $724 | $746 |
(b) if the resolution amount is not more than $20,000 and the insurer did not wholly admit liability for the claim—for each dollar of the settlement amount | $0.10 | $0.10 |
(c) if the resolution amount is more than $20,000 but not more than $50,000 and the insurer wholly admitted liability for the claim— | ||
(i) base amount, and | $724 | $746 |
(ii) for each dollar of the resolution amount over $20,000 | $0.12 | $0.12 |
(d) if the resolution amount is more than $20,000 but not more than $50,000 and the insurer did not wholly admit liability for the claim— | ||
(i) base amount, and | $2592 | $2670 |
(ii) for each dollar of the resolution amount over $20,000 | $0.12 | $0.12 |
(e) if the resolution amount is more than $50,000 but not more than $100,000 and the insurer wholly admitted liability for the claim— | ||
(i) base amount, and | $5184 | $5341 |
(ii) for each dollar of the resolution amount over $50,000 | $0.10 | $0.10 |
(f) if the resolution amount is more than $50,000 but not more than $100,000 and the insurer did not wholly admit liability for the claim— | ||
(i) base amount, and | $7128 | $7343 |
(ii) for each dollar of the resolution amount over $50,000 | $0.10 | $0.10 |
(g) if the resolution amount is more than $100,000 and the insurer wholly admitted liability for the claim— | ||
(i) base amount, and | $11448 | $11794 |
(ii) for each dollar of the resolution amount over $100,000 | $0.02 | $0.02 |
(h) if the resolution amount is more than $100,000 and the insurer did not wholly admit liability for the claim— | ||
(i) base amount, and | $13392 | $13796 |
(ii) for each dollar of the resolution amount over $100,000 | $0.02 | $0.02 |
Stage 5 | ||
If resolution of the claim occurs after the issue of a certificate under section 94 of the Act but without the commencement of court proceedings—from the issue of the certificate to finalisation of the matter— | ||
(a) an amount determined, in accordance with stage 4, by reference to the amount of the assessment as if that assessment were the resolution amount referred to in stage 4, and | As per Stage 4 | As per Stage 4 |
(b) for each dollar of the assessment amount | $0.02 | $0.02 |
Stage 6 | ||
If the matter is finalised after the commencement of court proceedings (whether by way of settlement or an award of damages)—from the issue of the certificate under section 94 of the Act to finalisation of the matter— | ||
(a) an amount determined in accordance with stage 5, and | As per Stage 5 | As per Stage 5 |
(b) for each dollar of the settlement or award amount | $0.02 | $0.02 |
Table B | Fees for 1 October 2020 - 30 September 2021 | Fees for 1 October 2021 - 30 September 2022 |
---|---|---|
Stage 1 |
| |
Advice on the issue of the certificate under section 94 of the Act | $356 | $367 |
Stage 2 | ||
From the giving of the advice on the certificate issued under section 94 of the Act to finalisation of the matter by settlement or award of damages (in addition to the $367 specified for stage 1)— | ||
(a) if the settlement amount or award is not more than $20,000 | NIL | NIL |
(b) if the settlement amount or award is more than $20,000 but not more than $50,000—for each dollar of the settlement amount or award over $20,000 | $0.10 | $0.10 |
(c) if the settlement amount or award is more than $50,000 but not more than $100,000— | ||
(i) base amount, and | $3780 | $3894 |
(ii) for each dollar of the settlement amount or award over $50,000 | $0.08 | $0.08 |
(d) if the settlement amount or award is more than $100,000— | ||
(i) base amount, and | $8856 | $9123 |
(ii) for each dollar of the settlement amount or award over $100,000 | $0.02 | $0.02 |
Other costs for legal services
Nature of costs | Fees for 1 October 2020 - 30 September 2021 | Fees for 1 October 2021 - 30 September 2022 |
---|---|---|
Costs associated with a medical dispute about a medical assessment matter under Part 3.4 of the Act, as allowed by the Commission or court— | ||
(a) maximum amount per medical dispute referred to the Commission under section 60 of the Act | $1000 | $1030 |
(b) maximum amount per medical dispute referred to the President under section 62 of the Act (but only if further assessment occurs under that section) | $1000 | $1030 |
(c) maximum amount per medical dispute referred to a review panel by the President under section 63 of the Act | $1000 | $1030 |
(d) maximum amount per claim | $2500 | $2575 |
Costs associated with a dispute referred to in section 96 of the Act, as allowed by the Commission— | ||
(a) maximum amount per dispute | $1200 | $1236 |
(b) maximum amount per claim (not including any amount for a dispute referred to in section 96(1)(e)–(g)) | $2500 | $2575 |
Cost of representation at an assessment conference under section 104 of the Act— | ||
(a) maximum flat fee | $1250 | $1288 |
(b) maximum additional amount per hour for each hour in excess of 2 hours | $300 | $309 |
Maximum costs for any interlocutory court proceedings | $800 | $824 |
Cost of representation in court— | ||
(a) maximum per day for advocate other than senior counsel | $2500 | $2575 |
(b) maximum per day for senior counsel | $3550 | $3657 |
Cost of conference directly related to an assessment of the claim or a court hearing, maximum per hour | $300 | $309 |
Maximum fees for medico-legal services
Appearances as witnesses | Fees for 1 October 2020 | Fees for 1 October 2021 to 30 September 2022 | |
---|---|---|---|
1 | Health practitioners called to give evidence other than expert evidence, per hour (or proportionately if not for a full hour) to a maximum of $600 | $300 | $310 |
2
| Health practitioners called to give expert evidence— | ||
(a) for the first one and a half hours (including time travelling to the court from the medical professional’s home, hospital, place of practice, office or other place and return to that place from the court) | $800 | $824 | |
(b) for every full hour after the first hour and a half (or proportionately if not for a full hour) to a maximum of $2,400 | $300 | $309 | |
3 | Travelling allowance in connection with appearance as witness—per kilometre | $0.55 | $0.55 |
4 | Accommodation and meals in connection with appearance as witness | reasonable costs | reasonable costs |
Medical reports
| |||
5
| Report made by an attending general practitioner— | ||
(a) if a re-examination of the patient is not required | $250 | $276 | |
(b) if a re-examination of the patient is required | $330 | $340 | |
6
| Report made by an attending specialist— | ||
(a) if a re-examination of the patient is not required | $800 | $824 | |
(b) if a re-examination of the patient is required | $1200 | $1236 | |
7
| Report made by a specialist who has not previously treated the patient (where both parties have not jointly agreed to the appointment of the specialist)— | ||
(a) if an examination of the patient is not required | $800 | $824 | |
(b) if an examination of the patient is required | $1200 | $1236 | |
8
| Report made by a specialist who has not previously treated the patient (where both parties have jointly agreed to the appointment of the specialist)— | ||
(a) if an examination of the patient is not required | $1200 | $1236 | |
(b) if an examination of the patient is required | $1600 | $1648 | |
9 | Charges for copying medical reports—per page | $1 | $1 |
Cancellation fee
| |||
10 | Fee if appearance or medical report is not required | Not more than 50% of the relevant amount specified in this Schedule | Not more than 50% of the relevant amount specified in this Schedule |
Claims cost disclosure
All lawyers representing a CTP claimant must provide us with a breakdown of costs related to common law for that claim when the claim is finalised.
This breakdown must include:
- the total amount the claim was resolved for
- all deductions (including all legal costs and disbursements) and paybacks in relation to the claim
- the total amount paid to the claimant.
The process for disclosing claims costs involves:
- ensuring the insurer has your correct and current email address
- after claim settlement we send you an email containing a secure link to an online form
- you have 20 days (from the date of the initial email) to complete and submit the online form to us. We monitor compliance in meeting this timeframe.
- after we receive the form, we’ll send you a confirmation email containing a PDF copy of the completed form.
For more information call us on 1300 656 919 or email us at [email protected].