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Example scenario: Isobel, a pedestrian

Isobel, a school teacher, was crossing the road at a pedestrian crossing when she was struck by a vehicle that failed to stop.

Her injuries were significant, fracturing her leg and pelvis and causing multiple spine fractures and she was assessed at having 12% whole person impairment.

Additionally, she suffered psychological trauma as a result of the accident and could only manage to return to work on reduced hours after 6 months of recovery time. It was a further 2 years before she returned to work full time.

 Previous CTP schemeNew CTP scheme
Income supportIsober is eligible for up to $5000 of combined medical, treatment and loss of income. Unless able to prove financial hardship, she was not eligible for any further up front income payments.

Unless she had more than 6 months leave, she would need to dip into her savings to pay for her living expenses.

Los past income was included in the lump sum common law settlement payment. As the average claim was between 3 and 5 years to settle, it would be a long time before she is reimbursed.
Isobel will receive weekly income payments for loss of earnings (95% - 80% of pre-injury income) for time she requires off work.

When she returns on reduced hours, Isobel will continue to receive weekly income payments to supplement her reduced income.
Medical and treatment costsSubject to the oteher driver's insurer accepting liabiliy, Isobel's ongoing medical and treatment expenses are covered until her common law claim is settled.

After this, she would have to manafe all future medical needs from her lump sum settlement payment.
Isobel’s medical and treatment expenses will be covered on an ongoing basis, for life if needed
Commercial attendant carePaid attendant care would have been covered by the insurer if they accepted liability. If not, Isobel would have been reimbursed as part of her lump sum settlement payment.Isobel may be eligible for commercial attendant care to assist with personal care and domestic duties.
Common law for damagesIsobel would have made a common law claim for past and future lost income, non-economic loss (e.g. pain and suffering) plus future medical and care costs.

She would have needed to engage a lawyer to help with her claim, which would take 3-5 years on average to settle. From her lump sum payment, she would pay her legal costs.

The remaining amount would need to be carefully managed to cover any future loss of earnings and medical needs.
Isobel can make a common law claim for damages of loss of income (past and future) and non-economic loss (e.g. pain and suffering). She can make this claim at any time.

Her weekly income payments could then continue for up to 5 years in total, until her claim is finalised.

She can engage a lawyer to help with her claim, however the amount the lawyer can charge for services is regulated.