How SIRA Calculates Interest on Delayed CTP Payments
A threshold injury under the Motor Accident Injuries Act 2017 (NSW) includes a soft tissue injury and a psychological or psychiatric injury that is not a recognised psychiatric illness (adjustment disorder and acute stress disorder are the usual examples; s 1.6 and Motor Accident Guidelines Part 5).
When a CTP insurer pays statutory benefits late, penalty interest applies under the Motor Accident Injuries Act 2017. SIRA calculates interest based on the date the claim was submitted and the date the payment was made. For example, if a claimant submits a claim on 1 January 2025 and receives payment on 1 April 2025, interest accrues for the 91 days between those dates. This interest is added to the total compensation owed.
Common Mistakes Claimants Make with Interest Calculations
Regional NSW claimants often make errors that reduce their interest payments. One frequent mistake is failing to submit claims promptly. Delays in submitting medical records or accident reports can push back the payment date, increasing the interest period. Another error is not tracking the exact dates of claim submission and payment. Claimants should keep detailed records of all correspondence with insurers to verify these dates.
A third mistake is misunderstanding how SIRA applies interest. Some claimants believe interest only applies to statutory benefits like weekly payments, but it also applies to treatment and care benefits. For instance, if a claimant receives delayed treatment for a soft-tissue injury, the interest calculation includes the time between the claim submission and the treatment payment.
Steps to Ensure Proper Interest Payments in Regional NSW
To avoid errors, regional claimants should take these steps: First, submit claims as soon as possible after the accident. Delays in reporting injuries or accidents can extend the interest period. Second, keep all documentation related to the claim, including medical records, accident reports, and correspondence with insurers. Third, request written confirmation of payment dates from insurers. This ensures there is no confusion about when the payment was made.
Time Limits and Dispute Options
Statutory benefits like weekly payments and treatment benefits are generally limited to 52 weeks if the injury is a threshold injury. However, interest continues to accrue beyond this period. Claimants should review their claim status with SIRA within 52 weeks of the accident to ensure all benefits are correctly calculated. If a dispute arises about interest payments, claimants can request a review from SIRA or seek independent legal advice.
When to Seek Legal Advice
Regional claimants should consult a solicitor if they notice discrepancies in their interest calculations. For example, if an insurer refuses to pay interest or applies it incorrectly, a lawyer can help challenge the decision. Legal advice is also recommended if a claimant has a complex injury, such as a whole-person impairment, which may affect the interest calculation.
Example: Interest Calculation in a Regional Claim
Consider a claimant who was in a car accident on 1 May 2025. They submitted a claim to SIRA on 10 May 2025 and received payment on 10 August 2025. During this period, the claimant also received treatment for a soft-tissue injury. SIRA would calculate interest for the 92 days between the claim submission and payment dates. If the claimant had submitted the claim earlier, the interest period would have been shorter, reducing the total interest owed.
Final Steps for Regional Claimants
To ensure proper interest payments, regional NSW claimants should submit claims promptly, track all dates, and verify payment records. If they encounter issues with their interest calculation, seeking legal advice can help resolve disputes and ensure they receive the correct compensation.
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