If I pursue a CTP claim against the at-fault driver, will it affect them financially?

September 25, 2024

Following a motor vehicle accident, victims frequently face physical injuries, emotional distress, and financial challenges. Thus, the Compulsory Third Party (CTP) insurance exists to provide a safety net for those injured on the road. However, many individuals hesitate to pursue a CTP claim, fearing it might financially impact the at-fault driver. This article will cover the CTP claim process in Queensland and how lodging this claim against an at-fault driver will affect them.


If you’ve been injured on the road, consult with our experienced Motor Accident Lawyers for a free, no-obligation consultation today.


However, before considering the financial implications for at-fault drivers, it's crucial to understand what CTP insurance is and how it operates.


What is CTP Insurance?


Compulsory Third Party (CTP) insurance is a mandatory form of coverage for all registered vehicles in Queensland, governed by the Motor Accident Insurance Act 1994. As the name suggests, you cannot register a vehicle without a CTP insurance, which is designed to provide compensation for personal injuries caused by motor vehicles. 


In Queensland, the Motor Accident Insurance Commission (MAIC) regulates CTP insurance. According to MAIC, the primary purpose of CTP insurance is to cover your liability for personal injury caused to others in a motor vehicle accident.


Specifically, CTP insurance responds to claims for personal injuries arising out of:


  • The driving of a motor vehicle
  • A crash with a motor vehicle or any attempt to avoid one
  • A vehicle running out of control
  • A defect in a motor vehicle causing loss of control while it's being driven


It's important to note that CTP insurance is distinct from third-party property insurance. The CTP insurer may differ from the other driver's insurer for third-party property damage.


Who does CTP Insurance Cover?


CTP insurance covers a wide range of individuals who might be injured in a motor vehicle accident. This includes:


  • Drivers
  • Passengers
  • Pedestrians
  • Cyclists
  • Motorcyclists


Nonetheless, it must be noted that CTP insurance covers personal injury claims, not property damage. The insurance applies regardless of where the accident occurs in Australia.


The CTP Claim Process in Queensland


Understanding the CTP claim process is essential for both the claimant and the at-fault driver. Let's break down the steps involved:

 

Report the Accident


In Queensland, you must report any accident that results in injury, death, or property damage exceeding $2,500.


Seek Medical Attention


It's crucial to seek medical attention immediately after an accident, even if injuries seem minor. Some injuries may not be immediately apparent, and having a medical record is essential for your claim.


Identify the At-Fault Vehicle's CTP Insurer


This information can be obtained from the police report or by contacting the MAIC. In Queensland, there are three currently licensed CTP insurers:


  • AAI Limited (trading as Suncorp Insurance)
  • Allianz Australia Insurance Limited
  • QBE Insurance (Australia) Limited


Identifying the correct insurer is important. Otherwise, lodging a claim with the incorrect CTP insurer can lead to significant issues.


Lodge a Notice of Accident Claim Form


To start a CTP claim, you need to fill out and submit a Notice of Accident Claim Form to the CTP insurer of the driver at fault. This form should be submitted within nine months of the accident or within one month of engaging a lawyer, whichever is earlier. Outside of this timeframe, a reasonable excuse for delay will need to accompany the claim form.


The Notice of Accident Claim form is a sworn declaration, and there are serious consequences for providing misleading or false statements. It's highly advisable to seek legal advice before swearing and submitting this form.


You may lodge claims either through the Motor Accident Insurance Commission's CTP claim portal or by directly contacting the relevant insurer. However, given the complexities involved, it's wise to consult with an experienced Motor Accident Lawyer, such as ours before submitting your claim.


Insurer's Assessment and Liability Response


Once the claim is lodged, the CTP insurer will assess the claim to determine liability. They might ask for more information or further medical evaluations during this process. Within six months, the insurer will provide a Liability Response.


Rehabilitation and Treatment


Throughout the claims process, you can continue to receive necessary treatment for your injuries. If liability is admitted, the insurer is required to fund reasonable and appropriate rehabilitation expenses.


Gathering Information and Medical Examinations

 

Both parties will gather information and documents from third parties about the nature and extent of the injuries. Independent medical examinations may be arranged to assess the injuries and their ongoing impact.

 

Compulsory Conference


The pre-court phase concludes with a Compulsory Conference, where the insurer, the injured party, and their legal representatives gather to negotiate and exchange settlement offers with the goal of resolving the claim amicably.

 

Resolution or Court Proceedings

 

Most claims are settled out of court. However, if the claim doesn't settle at the Compulsory Conference, the injured person may start court proceedings.

 

Financial Implications for the At-Fault Driver

 

Now, let's address the central question: Will pursuing a CTP claim financially affect the at-fault driver?

 

Direct Financial Impact

 

The short answer is that in most cases, pursuing a CTP claim against an at-fault driver will not directly affect them financially. Here's why:

 

  • Insurance Coverage: The whole purpose of CTP insurance is to cover the financial liability of drivers who cause accidents. When you make a claim, you're claiming against the insurance policy, not the individual's personal assets.

  • No Out-of-Pocket Expenses: Unlike some other types of insurance, CTP claims typically don't require the at-fault driver to pay an excess or deductible. The insurance company handles the entire claim payment.

  • Legal Protection: The CTP insurance provides legal protection to the at-fault driver. The insurer will handle all aspects of the claim, including legal representation if necessary.


Indirect Financial Implications

 

While there's no direct financial burden on the at-fault driver, there can be some indirect financial implications:


  • Other Insurance Policies: A history of at-fault accidents may affect the driver's ability to obtain other types of insurance or may lead to higher premiums for policies like comprehensive car insurance. However, this would likely be affected whether a person pursues a CTP claim or not.

  • Demerit Points: Depending on the nature of the accident, the at-fault driver may receive demerit points on their license. Accumulating too many points can lead to license suspension, which could indirectly affect their financial situation if it impacts their ability to work.


How Lifestyle Injury Lawyers Can Help

 

Given the complexities of the CTP claim process, it is crucial you seek legal advice from experienced Motor Accident Lawyers, such as ours. We will help you in:


  • Meeting Time Limits: There are strict time limits that apply to CTP claims. Missing these deadlines could bar you from bringing a claim.

  • Claim Preparation: We will properly prepare your case to ensure you claim for all possible damages.

  • Navigating the Process: Legal representation guides you through the process from start to finish, ensuring all necessary steps are taken.

  • Rehabilitation Services: We will ensure all reasonable and necessary rehabilitation services are provided throughout your claim.

  • Settlement Negotiations: Given that settlements are "once and for all," having expert legal advice can help ensure you receive fair compensation.


Conclusion

 

Pursuing a CTP claim against an at-fault driver in Queensland is not something that will impact their personal finances. The CTP insurance system is designed to protect both injured individuals and at-fault drivers, ensuring that compensation is provided without causing financial hardship to the driver.


If you've been injured in a motor vehicle accident, don't let concerns about the financial impact on the at-fault driver deter you from seeking the compensation you deserve. Talk to our experienced Motor Accident Lawyers today for a free consultation. 


Recent Articles

How does WorkCover determine if I'm a PAYG employee or contractor?
December 12, 2024
Understand how WorkCover determines PAYG employee vs. contractor status in Queensland. Learn about key factors, legal implications, and your workers' compensation rights.
I've Been in an Uber Accident – Now What? Your Guide to Compensation
December 6, 2024
Injured in an Uber accident? Learn your compensation rights, from medical expenses to economic loss. Get expert advice to navigate claims and maximise payouts.
Recover from whiplash following a car accident
December 4, 2024
Learn how to recover from whiplash following a car accident with effective treatment, self-care tips, and legal guidance to secure compensation for your injuries.
The Ins and Outs of TPD Claims
October 3, 2024
When someone’s life dramatically changes from a severe injury or illness, Total and Permanent Disability (TPD) claims can offer critical financial support during a difficult period.
Limitation Dates - What are they and why are they important?
September 3, 2024
When pursuing a personal injury compensation claim , it is crucial to lodge it within strict time limits or limitation periods. Otherwise, it might be challenging to commence legal action or you might lose your right to make a claim altogether, even if you have a strong case. Although there are exceptions and extensions to the time limit, the conditions may be difficult to meet. It is therefore crucial to consult an experienced personal injury lawyer such as ours to avoid complications. If you have been injured on the road, at work, or in a public place, don’t hesitate to consult with one of our team to start your claim. In this article, we will help you understand what limitation periods are and why they are important. Additionally, we will identify the key limitation dates you must know, and what it means to be "statute barred”. Limitation Periods: Nature and Importance In Queensland, a limitation period (or time limit) is the legal deadline by which you must start your legal action. These limits ensure that legal claims are made and resolved promptly. In addition, these maintain fairness by preserving evidence and providing clarity for both the claimants and defendants. If you don't file your claim within this timeframe, you generally lose the right to pursue it, even with a valid case. Here’s an overview of limitation periods in Queensland: Standard Time Limits: Personal Injury Claims : Three (3) years from the date of the injury or from when you become aware of the injury and its cause. When the Period Starts : The limitation period typically begins when the legal issue arises or when you first become aware of the facts related to your claim. Limitation Period for Personal Injury Claims The primary limitation date in Queensland is the three-year rule for personal injury claims, set out in section 11(1) of the Limitation of Actions Act 1974 . In practice, this means that if you have been injured due to someone else's negligence, you have three years from the date of your accident or injury to file court proceedings. However, there can be some complexities around this, such as when dealing with latent diseases or injuries that are not immediately apparent. In those cases, the limitation period may start from when you first became aware of the injury or its cause. If you fail to do so within this three-year window, your claim will be statute barred. Bear in mind that it is the filing of the court proceedings that matters, not the actual hearing of the case. As long as you have filed your claim in court before the three years is up, you will have met the limitation requirement, even if the case takes longer than that to make its way through the court system. Being Statute Barred If you fail to file your personal injury claim within the three-year limitation period, your claim will be considered statute barred. That is, the law imposes a complete defence to your claim - the person you are suing can argue that your claim is time-barred and have it dismissed by the court. Being statute barred is a very serious matter. It means you lose your legal right to pursue compensation, even if you have a strong case on the merits. The court has very limited discretion to extend the limitation period, so it is not something that can be easily overcome. The only way to avoid being statute barred is to ensure you file your claim in court before the third anniversary of your accident or injury. For this reason, it is vital to seek legal advice immediately after being injured. An experienced personal injury lawyer such as ours will be able to assess your prospects, gather the necessary evidence, and get your claim filed in time. Other Important Time Limits While the three-year limit is the main date to keep in mind, other important deadlines also apply to personal injury claims in Queensland. Pre-court procedures under PIPA and MAIA Before you can file a court claim for personal injuries, you must comply with the pre-court procedures set out in Personal Injuries Proceedings Act 2002 (PIPA) and Motor Accident Insurance Act 1994 (MAIA) (depending on whether your injury was due to a motor vehicle accident or not). This involves giving a formal notice of claim to the person you intend to take legal action against and their insurer, and participating in a compulsory conference to try to resolve the matter without going to court. You must adhere to strict time limits for notifying the respondent of your claim within: Nine (9) months of the incident that caused your injury; OR One (1) month of first consulting a lawyer about the claim. Whichever of these two dates comes first is the deadline you must meet. If you miss this deadline, you will need to provide a reasonable excuse for the delay. The court has discretion to strike out your claim if it finds your excuse is not reasonable. Dust-related conditions For personal injuries caused by dust-related conditions like silicosis or asbestosis, there is no limitation period at all under the Limitation of Actions Act 1974. This means you can bring a claim at any time, no matter how long ago you were exposed to the harmful dust. However, you still need to follow the pre-court procedures under PIPA. Child claimants If the injured person is a child under 18 years old, the three-year limitation period does not start running until they turn 18. Under PIPA, on behalf of the child, their parent or guardian must submit the notice of claim. Fraud and concealment If the defendant has committed fraud or deliberately hidden information, the standard three-year limitation period may be extended. Instead of starting from the date of the incident, the time limit begins when you discover the fraud or when you could have discovered it with reasonable effort. Court Extensions In some cases, the court can extend the limitation period if there are valid reasons for the delay, such as the discovery of new evidence or other exceptional circumstances. Conclusion Limitation dates are a critical part of personal injury law in Queensland. Failing to lodge your claim within the three-year time limit puts you at risk of being statute barred, and losing your legal right to compensation. While limitation dates can seem harsh, they serve an important purpose. They provide certainty and finality for defendants, and encourage claimants to bring their claims on time while evidence is still fresh. If you have been injured due to someone else's negligence, don't delay seeking legal advice. Consult one of our experienced personal injury lawyers today. We will help you navigate the complexities of personal injury law and give your claim the best chance of success. Get a free claim check today!
Share by: