Under New South Wales law, claimants who receive statutory benefits under the Compulsory Third Party (CTP) scheme may be entitled to claim interest on late payments. This article explains the legal basis for such claims, the relevant provisions of the Motor Accident Injuries Act 2017, and practical steps to pursue interest on delayed payments. It focuses on eligibility criteria and time limits applicable to claimants in Western Sydney.
Legal Basis for Claiming Interest
The right to claim interest on late CTP payments arises from the principle that insurers must pay statutory benefits promptly. Section 4.4 of the Motor Accident Injuries Act 2017 outlines that weekly benefits and treatment and care benefits are generally limited after 52 weeks if only threshold injuries apply. However, interest claims are distinct and depend on the insurer’s failure to meet statutory deadlines. SIRA’s guidelines confirm that insurers must pay benefits within 14 days of receiving a valid claim, and delays may trigger interest entitlements under the Statute of Limitations principles.
Proving Eligibility for Interest
To claim interest, a claimant must demonstrate:
- A valid CTP claim under the Motor Accident Injuries Act 2017
- A delay in payment exceeding the 14-day statutory deadline
- Evidence of the insurer’s failure to pay on time (e.g., correspondence, payment records)
- That the delay caused financial harm (e.g., lost income, additional expenses)
SIRA’s What you can claim page confirms that interest is not automatically included in statutory benefits but may be sought separately if the insurer breaches payment deadlines. Claimants should retain all documentation showing the insurer’s delay, including payment schedules and communication with claims officers.
Time Limits and Dispute Options
Interest claims must be made within the time limits set by the Statute of Limitations. While the exact period depends on the nature of the delay, SIRA advises that claims should be pursued promptly. If an insurer disputes the entitlement to interest, claimants may need to:
- Request a review of the insurer’s payment schedule
- Submit evidence of the delay to the NSW Civil and Administrative Tribunal (NCAT)
- Seek legal advice if the dispute escalates
Claimants should note that interest is not guaranteed and depends on the insurer’s compliance with statutory deadlines. For example, a claimant who received weekly benefits delayed by 30 days may need to prove that the insurer’s failure to pay within 14 days of the claim being processed caused financial loss.
Practical Example
Consider a claimant who submitted a CTP claim for weekly benefits on 1 January 2025. The insurer failed to pay until 15 January 2025, exceeding the 14-day deadline. Under SIRA guidelines, the claimant may be entitled to claim interest for the 14-day delay. However, if the insurer paid on time but the claimant’s payment was delayed due to administrative errors, the claimant must prove the insurer’s responsibility for the delay.
When to Seek Advice
Claimants should consult a legal professional if:
- The insurer disputes the claim for interest
- The delay exceeds 14 days and the claimant has not received payment
- The claimant is unsure whether the insurer’s actions breached statutory deadlines
Legal advice can help clarify whether the claimant meets the criteria for interest under the CTP scheme and whether the insurer’s actions constitute a breach of duty.
Next Steps
CTP entitlements depend on the accident date, injury type, and insurer compliance with payment deadlines. To request contact about your circumstances, complete the quick, no obligation enquiry form.