How the 2017 Reforms Changed CTP Insurer Timelines in NSW
The 2017 reforms to NSW's Compulsory Third Party (CTP) insurance scheme introduced significant changes to how insurers handle claims, particularly regarding decision timelines. Under the Motor Accident Injuries Act 2017, insurers are now required to acknowledge claims within 14 days and make a decision within 28 days for straightforward cases. This replaced the previous system where delays were common and claimants had limited recourse.
Practical Steps for Claimants Facing Delays
If your CTP insurer is taking longer than 28 days to decide your claim, you should:
- Document all communication with the insurer, including dates and correspondence
- Keep records of any medical treatment or expenses incurred during the delay
- Note any attempts to escalate the matter through SIRA's internal review process
- Consider seeking legal advice if the insurer fails to respond within the mandated timeframe
Insurers must provide a written explanation for delays, and failure to comply could entitle you to claim compensation for additional stress or financial loss.
Key Changes Post-2017 Reforms
The reforms introduced clearer time limits for insurers, with penalties for non-compliance. Insurers must now:
- Acknowledge claims within 14 days of receipt
- Make decisions within 28 days for 'straightforward' claims
- Provide written reasons for any delays beyond these periods
These changes align with SIRA's updated procedures, which now include mandatory time tracking for claims processing. The reforms also clarify that insurers cannot delay decisions to 'review' claims without a valid reason.
What to Do If Your Claim Is Delayed
If your insurer has not made a decision within 28 days, you should:
- Request a written explanation for the delay
- Submit a formal written complaint to SIRA
- Keep copies of all correspondence
- Seek legal advice if the insurer continues to delay
Under the 2017 reforms, claimants have stronger protections against unreasonable delays. Insurers must now provide clear timelines and explanations, with penalties for non-compliance.
Example Scenario
A claimant in Albury submitted a CTP claim after a car accident. The insurer acknowledged the claim within 10 days but took 35 days to make a decision. Under the 2017 reforms, this delay would trigger a review of the insurer's compliance with time limits. The claimant could then request compensation for the additional 7 days of delay.
When to Seek Legal Advice
If your insurer:
- Fails to acknowledge your claim within 14 days
- Takes longer than 28 days to make a decision
- Refuses to provide a written explanation for delays
- Attempts to delay decisions beyond the statutory limits
You should contact a legal professional. While SIRA provides some protections, complex cases may require legal intervention to enforce your rights under the 2017 reforms.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.