If you've been injured in a motor vehicle accident in NSW and your CTP insurer is delaying payments, you may be owed interest under the Motor Accident Injuries Act 2017. This guide explains what injury documentation is required, how late payment interest works, and how to protect your claim.
How CTP Late Payment Interest Works
Under the Motor Accident Injuries Act 2017 (MAIA), insurers must pay statutory benefits within 28 days of receiving a valid claim. If they delay payment, interest accrues at the Bank of England base rate (currently 0.1% as of October 2026). This applies to weekly income payments, treatment and care benefits, and other statutory entitlements.
The interest calculation starts from the date the insurer should have paid, not when they actually make the payment. For example, if your claim was due on 1 July 2025 but paid on 1 August 2025, interest would accrue for 31 days. This rule applies even if the insurer pays the full amount later.
Injury Documentation Checklist for CTP Claims
To support your claim, you must provide evidence of your injuries and how they affect your daily life. Key documents include:
- Medical records confirming your injuries (e.g., X-rays, MRI scans, GP notes)
- Accident report from NSW Police or the driver's insurance company
- Witness statements or photos of the accident scene
- Income records showing lost wages or reduced earning capacity
- Correspondence with your insurer showing delays in processing
SIRA guidelines require claimants to provide 'sufficient evidence to establish the nature and extent of the injury' within 28 days of the accident. If your injuries are below the 'threshold injury' level (e.g., soft tissue injuries), you may still qualify for benefits but may not be eligible for damages.
Practical Steps for CTP Claimants
- Seek immediate medical attention - Delayed treatment can affect your claim. Keep all medical records and inform your doctor about how your injuries impact your daily activities.
- Document the accident - Take photos of the vehicle damage, road conditions, and any visible injuries. Get witness contact details if possible.
- Notify your insurer in writing - Send a letter confirming your claim and requesting payment within 28 days. Keep copies of all correspondence.
- Track payment timelines - If your insurer pays late, note the exact date of payment and calculate the interest using the Bank of England rate.
- Review your claim regularly - If your insurer disputes your claim, request a written explanation and consider seeking independent medical advice.
When to Seek Legal Advice
If your insurer refuses to pay, disputes the severity of your injuries, or delays payment beyond 28 days, you may need to escalate the matter. Under the MAIA, you have 3 years from the date of the accident to file a claim. However, late payment interest calculations can affect your overall entitlements.
Example: Late Payment Interest Calculation
Suppose you were injured in a collision on 1 January 2025. Your insurer receives your claim on 1 February 2025 but pays it on 1 March 2025. Under the MAIA, interest would accrue for 28 days (from 1 February to 1 March), not the 62 days between the accident and payment. This distinction is critical for calculating the total amount owed.
Next Steps for CTP Claimants
If your insurer is delaying payments or disputing your claim, you should act quickly. Time limits apply to both statutory benefits and legal action under the MAIA. Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.