CTP fraud

CTP fraud can include exaggerated claims, staged accidents, lying about a claim or providing false or misleading information to an insurer, doctor, health professional or lawyer.

It can be perpetrated by claimants, vehicle owners and/or service providers.

CTP fraud can be prosecuted as an offence under:

• Section 117 of the Motor Accidents Compensation Act 1999 
• sections 6.41 (fraud on motor accidents injuries scheme) and 6.40 (false or misleading claims) of the Motor Accident Injuries Act 2017 each of which carries a maximum penalty of 500 penalty units or imprisonment for two  years, or both
• part 4AA of the Crimes Act 1900 which carries substantial maximum penalties of imprisonment.

We have been working with insurers and other agencies to identify, manage and deter fraudulent claims by:

• analysing data across the industry
• reporting trends and suspicious issues to the CTP Green Slip insurers
• encouraging insurers to adopt best practice fraud identification and prevention strategies
• monitoring and collating the results of insurer initiatives
• working with multiple agencies to facilitate the investigation of suspicious activities
• exploring overseas experiences related to personal injury fraud
• establishing a multi-agency taskforce and providing resources to investigate CTP fraud in NSW
• setting up the CTP Insurance Fraud hotline with the Insurance Fraud Bureau of Australia so members of the public can report suspected fraud.