CTP Insurer Late Payment Interest in Rural NSW
Where a person's only injuries resulting from the accident are threshold injuries, weekly benefits and treatment and care generally cease after 52 weeks (ss 3.11 and 3.28).
If your CTP claim is delayed, you may be owed interest under NSW law. The Motor Accident Injuries Act 2017 requires insurers to pay interest for late payments, but the exact rate depends on the circumstances. Rural claimants must document delays and follow specific steps to assert their rights.
How to Prove Payment Delays
To show your insurer delayed payment, keep records of:
- All correspondence with the insurer (emails, letters)
- Dates when you submitted claims or medical reports
- Proof of financial impact (e.g., lost income records)
SIRA guidelines emphasize that claimants must actively follow up on delayed payments. If your insurer fails to pay within 28 days of a claim being ready for settlement, you may have a right to interest.
Steps to Take if Payment is Delayed
- Write to the insurer requesting payment within 5 business days of receiving your claim
- Keep copies of all communications
- Escalate to SIRA if payment isn't made within 28 days
- Seek legal advice if your claim is delayed beyond 52 weeks
The NSW Civil and Administrative Tribunal (NCAT) handles disputes about interest rates. Rural claimants should note that delays in remote areas may have different timelines due to limited access to services.
SIRA Guidelines for Rural Disputes
SIRA's 'Making a motor accident claim' page states that claimants must:
- Submit claims within 5 years of the accident
- Provide medical evidence of injuries
- Request payment within 5 business days of claim readiness
For rural areas, SIRA recommends using the 'contact us' form on their website to report payment delays. Insurers must pay interest at the rate set by the NSW Treasury for late payments, which is currently 5.5% per annum.
Example Scenario
A farmer injured in a rural road accident submitted a claim to his insurer. After 30 days with no payment, he contacted SIRA. The insurer agreed to pay the claim plus interest at the current rate. This shows how documenting delays and following up can secure your right to interest.
If your CTP claim is delayed, act quickly. Rural claimants may face additional challenges accessing services, so it's important to follow the steps outlined above. Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.