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Example scenario: Jake, a not at fault driver

Jake, a plumber, was driving to soccer training when he was involved in a head-on collision after an oncoming vehicle drifted onto his side of the road.

He fractured his pelvis, knee and wrist and suffered some minor nerve damage.

Jake’s recovery was slow and he was unable to return to work for many months.

He was assessed as having less than 10% whole person impairment.

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

Unless he had 5 months leave accrued, he would have needed to dip into his savings to pay for his living expenses.

He would have been compensated for lost past income in the lump sum common law settlement payment. The average time for a claim to be finalised was 3 to 5 years. It would be a long time before he was reimbursed.
Jake will receive weekly income payments for loss of earnings (95% - 85% of pre injury income) for the time he is off work for up to 2 years.

Payments will start soon after he makes a claim.
Medical and treatment costsSubject to the other driver’s insurer accepting liability, Jake’s ongoing medical and treatment expenses would be covered until his common law claim is settled. After this, he would have to manage all future medical needs from his lump sum payment.All of Jake’s medical and treatment* expenses will be covered on an ongoing basis, for life if needed.
Commercial and attendant careAny paid attendant care would either be covered by the insurer (if they admit liability) or reimbursed as part of his lump sum settlement amount.Jake may be eligible for commercial attendant care to help him around the home.
Common law claim for damagesJake would make a common law claim for post lost income, future lost income and future medical treatment and care.

He would engage a lawyer to help him with his claim which could take on average 3 to 5 years to settle.

From his lump sum payment, he would have paid his legal costs. He would then have to manage the remaining amount to cover any future loss or earnings and medical needs.
After receiving 20 months of income benefits, if Jake's earning capacity remains impaired, he can make a common law claim for past and future economic loss.

His weekly loss income payments can then continue for up to 3 years in total, allowing time for the claim to be finalised.

He can engage a lawyer to help with his claim however the amount the lawyer can charge is regulated.

*reasonable and necessary