SIRA Logo

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 5 months.

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

Unless he has 5 months leave accrued, he will need to dip into his savings or borrow money to pay for his 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 he is reimbursed.
Jake will receive weekly income payments for loss of earnings (95% - 80% of pre-injury income) for the 5 months he is off work.

Payments will commence soon after he makes a claim.
Medical supportSubject to the other drivers’ insurer accepting liability, Jake’s ongoing medical and treatment expenses are covered until his common law claim is settled. After this, he will 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 required.
Commercial attendant careAny paid attendant care would either be covered by the insurer (if they admit liability) or reimbursed as part of his lump sum payment.Jake may be eligible for commercial attendant care* to help him around the home.
Common law claimJake would make a common law claim for past lost income, future lost income, and future medical treatment and care.

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

From his lump sum payment, he will pay his legal costs. He must manage the remaining amount to cover any future loss of earnings and medical needs.
If Jake’s earning capacity remains impaired, he can make a common law claim for past and future economic loss.

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

*reasonable and necessary