When CTP Insurers Delay Payments, Interest May Apply
If a CTP insurer in New South Wales delays paying your compensation, you may be entitled to interest under the Motor Accident Injuries Act 2017. This applies to statutory benefits like weekly payments and treatment costs, not common law damages. Interest is calculated based on the NSW Civil and Administrative Tribunal’s (NCAT) prescribed rate, which is typically the Bank of Australia rate plus 1%.
How Interest Works for CTP Claims
Under the Motor Accident Injuries Act 2017, insurers must pay interest on delayed statutory benefits. This includes weekly income payments and treatment and care benefits. The interest rate is set by NCAT and is usually the bank’s standard rate plus an additional percentage. For example, if an insurer delays payment by 12 months, interest would accrue on the total amount owed during that period.
Steps to Take if Payment is Delayed
If your CTP insurer delays payment, take these steps:
- Document the delay: Keep records of when you requested payment and when it was received.
- Contact the insurer: Request a written explanation for the delay.
- Seek mediation: SIRA offers a free mediation service to resolve disputes.
- Consult a legal professional: If the insurer refuses to pay interest, a lawyer can help you pursue compensation.
Time Limits for Interest Claims
There is no specific time limit for claiming interest on delayed CTP payments. However, the longer the delay, the more interest accrues. It is important to act promptly to ensure you receive all owed payments.
SIRA Guidance on Late Payment Interest
SIRA’s guidelines state that insurers must pay interest on delayed statutory benefits. They also advise claimants to keep detailed records of all communications with the insurer. If you believe your insurer is not complying with the law, you can contact SIRA’s claims team for assistance.
Example: A Claimant’s Experience
Consider a scenario where a claimant in Bathurst receives a CTP injury claim. The insurer delays payment for six months. Under the Act, the claimant is entitled to interest on the delayed payment. By documenting the delay and seeking mediation, the claimant can recover the owed interest.
When to Seek Legal Advice
If your CTP insurer refuses to pay interest or disputes your claim, it is important to seek legal advice. A solicitor can help you understand your rights and ensure you receive all compensation owed.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.