The current claims process is lengthy and complicated. The same process applies whether a person has a minor, moderate or serious injury. The reforms will streamline the claims process and pay benefits to injured people sooner.
Most people with minor to moderate injuries recover within a short period of time. Yet under the current scheme the average time for a claim to be settled is 3 to 5 years.
The introduction of benefits set in law will be a major improvement for all people injured on NSW roads. Benefits will start being paid soon after a claim is made.
For those with minor injuries, they will no longer need to go through a lengthy and complex common law claims process.
A greater percentage of claims will be paid in the first year compared to the current scheme.
Under the current scheme only 6% of claims are paid in the first year after an accident. Under a reformed scheme more than 27% of claims will be paid in this time.
Moving from an adversarial scheme where insurers and lawyers argue the amount of compensation to be awarded, to one where insurers are required by law to provide benefits to the injured, will require a cultural shift.
We will issue new claims handling guidelines and other information to bring about this change.