Late Payment Interest in NSW CTP Claims: What You Need to Know
If a CTP insurer in NSW delays payment of statutory benefits, including weekly payments or treatment and care benefits, interest may be payable under the Motor Accident Injuries Act 2017. This interest is not automatic, it arises only when the insurer fails to pay a benefit within the time required by law. In Greater Sydney, as elsewhere in NSW, keeping accurate records is essential to support a claim for late payment interest. This article explains what evidence and records to preserve to establish entitlement.
The Legal Basis for Late Payment Interest in NSW
Under the Motor Accident Injuries Act 2017, an insurer must pay a statutory benefit within 14 days of receiving a valid claim form and supporting evidence. If the insurer fails to pay within this period, interest accrues at a rate set by the NSW Government. The interest is calculated from the date the benefit was due until the date it is actually paid. This applies to weekly income payments, treatment and care benefits, and other statutory payments under the CTP scheme.
The right to claim interest is not automatic. It requires proof that the insurer was in breach of its statutory obligation to pay on time. The burden of proof lies with the claimant. Therefore, maintaining a clear and complete record of all communications and payments is critical.
Key Evidence and Records to Preserve
To support a claim for late payment interest, you must retain the following records:
- A copy of the claim form submitted to the insurer, including the date it was sent and proof of delivery (e.g., email receipt, postmark, or signed delivery confirmation).
- All correspondence with the insurer, including emails, letters, and text messages, showing the date of each communication and the insurer’s response.
- A record of when the insurer acknowledged receipt of your claim and any written confirmation of the claim’s acceptance or rejection.
- The original invoice or receipt for any treatment or care service paid for out of pocket, including the date of service and the date of payment.
- Bank statements or payment records showing the date and amount of any payment made by the insurer, including direct deposits or cheques.
- A written record of any verbal communication with the insurer, including the date, time, and name of the representative spoken to.
- A log of all follow-up actions taken, such as calls made, letters sent, or emails drafted, to demonstrate ongoing efforts to secure payment.
These documents form the foundation of your claim. Without them, it will be difficult to prove the insurer’s delay and the exact period over which interest should be calculated.
How SIRA Guides Evidence Handling
The State Insurance Regulatory Authority (SIRA) provides guidance on the handling of evidence in motor accident claims. SIRA emphasises that claimants must provide sufficient evidence to establish the insurer’s failure to pay on time. This includes proof of when the benefit was due and when it was received.
SIRA notes that insurers are required to process claims within 14 days of receiving a completed claim form. If an insurer delays beyond this period, the claimant may be entitled to interest on the unpaid amount. SIRA does not require a separate claim for interest, interest is automatically calculated from the date the benefit was due, provided the claimant has met their evidentiary obligations.
SIRA also advises that claimants should not assume that an insurer’s internal processing delay is not a breach. The 14-day deadline is strict, and failure to meet it triggers the interest obligation regardless of the insurer’s internal procedures.
Time Limits and Dispute Procedures
There is no fixed time limit for claiming late payment interest under the Motor Accident Injuries Act 2017. However, it is best to raise the issue as soon as the delay is identified. The longer you wait, the more difficult it may become to obtain accurate records, particularly if the insurer has not kept a full file.
If the insurer refuses to pay interest, you may request a review under the CTP scheme. SIRA provides a dispute resolution process for claims that are not resolved through direct negotiation. You may also seek assistance from a legal practitioner to assist with the dispute.
A hypothetical example: A pedestrian in Sydney’s Inner West was injured in a motor vehicle accident on 15 May 2026. They submitted a claim form on 20 May 2026 and received written confirmation of acceptance on 25 May 2026. The insurer failed to pay the first weekly benefit until 10 August 2026. The claimant had kept a copy of the claim form, the acceptance letter, and bank statements showing the payment date. They were entitled to interest on the unpaid benefit from 25 May 2026 to 10 August 2026, calculated under the statutory rate.
When to Seek Independent Advice
While the CTP scheme provides a framework for late payment interest, the process of gathering and presenting evidence can be complex. If the insurer disputes the claim or refuses to pay interest, or if you are unsure whether your records are sufficient, it is advisable to seek independent legal advice.
A legal practitioner can help you assess whether the insurer breached its statutory obligation, calculate the correct interest amount, and assist in making a formal claim if necessary. This is particularly important in Greater Sydney, where claim volumes are high and insurer responses vary.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.