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Introduction
The current Compulsory Third Party (CTP) insurance Scheme, established with the commencement of the Motor Accident Injuries Act 2017 (MAI Act), is a mandatory insurance scheme providing benefits and support relating to the death of or injury to persons as a consequence of motor crash and protection to drivers from liability if they cause injury or death to others.
Purpose
The review of the MAI Act (and the regulation and guidelines under this Act) will determine whether the policy objectives of the Act remain valid and whether the terms of the Act (and regulations and guidelines) remain appropriate for securing those objectives.
Legislative basis for the review
Under section 11.13(2) of the MAI Act, a review is to be conducted as soon as practicable:
- after the period of 3 years from the commencement of the Motor Accident Injuries Amendment Act 2022, and
- every 5 years after the period of 3 years referred to in paragraph (a).
Matters to be considered
The review will consider, under section 11.13(3), all aspects of the Act, including:
- the effectiveness of the scheme ensuring insurers are receiving a fair but not excessive profit margin,
- the general performance of insurers in the scheme,
- the timeliness of the provision of benefits to injured persons,
- the proportion of each dollar of premiums collected that directly benefits injured persons,
- whether further changes are needed to the scheme.
Matters out of scope
The review will not consider or make recommendations relating to other legislation, or regulations or guidelines made under other legislation, including:
- State Insurance and Care Governance Act 2015
- State Insurance and Care Governance Regulation 2021
- Motor Accidents Compensation Act 1999 (the 1999 Act)
- Motor Accidents Compensation Regulation 2020
- Motor Accidents (Lifetime Care and Support) Act 2006
- Motor Accidents (Lifetime and Support) Regulation 2020
- Personal Injury Commission Act 2020
- Personal Injury Commission Regulation 2020
- Personal Injury Commission Rules 2021
Process
The Department of Customer Service will conduct the statutory review on behalf of the Minister for Customer Service and Digital Government.
To inform the statutory review, there will be a public consultation and engagement process. The Department of Customer Service will engage stakeholders from the start of the review, with formal consultation expected to start in Quarter 2, 2026.
SIRA will support the review by preparing and providing information on the CTP Scheme and its performance as requested, and will provide ongoing subject matter expertise as required.
Final report
The Department of Customer Service will deliver the final report to the Minister for Customer Service and Digital Government by the end of 2026.
Background
The MAI Act commenced in April 2017, establishing the current CTP Scheme and outlining payments and supports available for persons injured in a motor crash in New South Wales. It applies to injuries sustained from a motor crash occurring on or after 1 December 2017.
The introduction of the current Scheme sought to reduce complexity, enable more timely payments and support, introduce internal review for disputes and reduce premiums.
Clayton Utz and Deloitte conducted the first statutory review of the MAI Act 2017 in July 2021. Following the first statutory review, changes were implemented through the Motor Accident Injuries Amendment Act 2022. These amendments commenced in 2022 and 2023 to address recommendations to ensure a person with an injury had more timely access to payments, improve rehabilitation and enhance Scheme oversight.
The Scheme is a long-tail scheme where claims are open for longer durations due to the nature of injuries and ongoing treatment needs. The Scheme is therefore continuously monitored over time to understand the impacts of the legislative amendments and broader reforms.
Updated 4 November 2025