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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 who 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.

 Current CTP Green Slip SchemeProposed CTP Green Slip scheme
Income supportIsobel is eligible for up to $5,000 of combined medical, treatment and loss of income benefits. Unless able to prove financial hardship, she is not eligible for any further up front income payments.

Unless she has more than 6 months leave accrued, she will need to dip into her savings or borrow money to pay for her living expenses.

Lost past income is included in the lump sum common law settlement payment.  As the average claim takes between 3-5 years to settle, it will be a long time before she is reimbursed.
Isobel will receive weekly income payments for loss of earnings for (95% - 80% of pre-injury income) for the 6 months she requires off work.

Once she returns on reduced hours, Isobel will continue to receive weekly income payments to supplement her reduced income.
Medical supportSubject to the other driver’s’ insurer accepting liability, Isobel’s ongoing medical and treatment expenses are covered until her common law claim is settled.

After this, she will have to manage all future medical needs from her lump sum payment.
Isobel’s medical and treatment* expenses will be covered for life.
Commercial attendant carePaid attendant care would be covered by the insurer if they accept liability. If not, Isobel will pay for this and be reimbursed as part of her lump sum payment.Isobel may be eligible for commercial attendant care* to assist with personal care and domestic duties.
Common law claimIsobel can make a common law claim for past lost income, pain and suffering (non-economic loss) and future loss of income, plus future medical and care costs.

She will need to engage a lawyer to help with her claim, which can take 3-5 years on average to settle.

From her lump sum payment, she will pay her legal costs. The remaining amount must be managed carefully by Isobel to cover any future loss of earnings and medical needs.
Isobel can make a common law claim for past and future economic loss and pain and suffering (non-economic loss).

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

*reasonable and necessary