Late Payment Interest and CTP Insurer Obligations in NSW
If your CTP insurer delays payment of statutory benefits, you may be entitled to interest under NSW law. The Motor Accident Injuries Act 2017 (s 4.4) requires insurers to pay benefits within 28 days of receiving a valid claim. Delays beyond this period may trigger interest calculations under the Interest Act 1974, which applies to statutory benefits. However, many claimants in Bathurst NSW overlook key steps that could protect their financial rights.
Common Mistakes CTP Insurers Make
- Ignoring Interest Calculations: Insurers often fail to apply interest for delays exceeding 28 days. Under the Interest Act 1974, interest accrues at 10% per annum on delayed payments unless the insurer proves the delay was unavoidable.
- Miscalculating Accrual Dates: Insurers may incorrectly start interest from the date of the accident rather than the due date. For example, if a claim is submitted on 1 January 2025 but paid on 1 March 2025, interest should accrue from 1 February 2025 (the 28-day deadline).
- Disputing Interest Without Evidence: Some insurers challenge interest claims without providing evidence of their own compliance with payment deadlines. This can delay resolution and increase financial loss for claimants.
Practical Steps for Claimants in Bathurst
To protect your claim, take these actions:
- Document all communications with your insurer, including dates of claim submission and payment.
- Request written confirmation of payment dates and interest calculations.
- Keep records of financial impact from delays, such as lost income or additional living costs.
- Seek legal advice if your insurer refuses to apply interest or disputes your claim.
Time Limits and When to Act
- You have five years from the date of the accident to claim statutory benefits under the
- Motor Accident Injuries Act 2017*. However, interest claims must be made within this period. Delays beyond 28 days may also trigger additional legal remedies, such as the
- NSW Civil Procedure Act 2009* provisions for equitable remedies.
Example: A Claimant’s Right to Interest
Consider a claimant who submitted a claim on 1 January 2025 but received payment on 1 April 2025. Under NSW law, the insurer must pay interest for the 28-day period after the claim was submitted. If the insurer pays on 1 April 2025, interest would accrue from 1 February 2025 (the 28-day deadline). This example highlights how delays beyond the statutory deadline can result in significant financial losses.
Next Steps
CTP payment delays can have serious financial consequences. By understanding your legal rights and avoiding common mistakes, you can protect your claim. Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.