Late Payment Interest, What the PIC Expects in CTP Disputes
If a CTP insurer in New South Wales fails to pay statutory benefits on time, penalty interest may apply under the Motor Accident Injuries Act 2017. The Personal Injury Commission (PIC) expects claimants to understand that interest is not automatically awarded and must be claimed through formal dispute processes. In Greater Sydney, the PIC reviews these claims with strict regard to statutory timelines, evidence of delay, and the insurer’s compliance with payment obligations. The PIC does not assume entitlement to interest; it assesses whether the insurer’s failure to pay was unreasonable and whether the claimant took reasonable steps to secure payment.
Legal Framework for Late Payment Interest
Under the Motor Accident Injuries Act 2017, a CTP insurer must pay statutory benefits within 14 days of receiving a valid claim form and supporting evidence. If payment is delayed beyond this period, the claimant may be entitled to penalty interest at a rate set by the Act. The interest is calculated from the day after the 14-day period expires until the date of actual payment. The PIC expects claimants to provide a clear record of when the claim form and evidence were submitted, and when the insurer acknowledged receipt. The insurer’s failure to respond within 14 days may trigger the interest obligation, but the claimant must demonstrate that the claim was properly submitted and not delayed by their own actions.
What the PIC Expects in Dispute Proceedings
In dispute proceedings, the PIC expects claimants to provide documentary evidence of the insurer’s failure to pay on time. This includes:
- A copy of the claim form and supporting evidence submitted to the insurer
- A dated record of submission (e.g. email receipt, postmark, or courier tracking)
- The insurer’s written acknowledgment of receipt, if available
- The date the insurer made the actual payment
The PIC will not award interest if the delay was due to incomplete or inaccurate information provided by the claimant. For example, if the claimant failed to submit a medical certificate or failed to complete the claim form correctly, the insurer may not be liable for interest. The PIC also considers whether the claimant made a reasonable effort to follow up on a delayed payment. The PIC may reject a claim for interest if the claimant failed to send a formal request for payment or did not respond to insurer queries.
Practical Steps and Evidence That Matter
To support a claim for late payment interest, claimants should:
- Retain a copy of all correspondence with the insurer, including emails, letters, and call logs
- Keep a record of all payments made to medical practitioners, including invoices and payment confirmations
- Obtain a written statement from the medical practitioner confirming the date the claim form was provided to them
- Submit a formal written request for payment if the insurer does not respond within 14 days
In Greater Sydney, the PIC has noted that claimants who use electronic submission systems (such as the SIRA online portal) and retain digital confirmation of submission are more likely to have their interest claims accepted. The PIC also expects claimants to act promptly. Delays in initiating a dispute may affect the PIC’s assessment of whether the claimant took reasonable steps to secure payment.
Time Limits and Dispute Processes
A claim for late payment interest must be raised within the time limits set by the Motor Accident Injuries Act 2017. The claimant must begin a dispute process within 12 months of the insurer’s failure to pay. The PIC will not accept a dispute that is submitted more than 12 months after the due date for payment. This time limit is strict and not extended for reasons such as illness, lack of legal advice, or insurer delay in responding.
If the insurer refuses to pay interest, the claimant may apply to the PIC for a determination. The dispute must be lodged using the SIRA online portal or by completing a formal dispute form. The PIC will review the evidence and may request additional information. The claimant must respond to any request within 28 days, or the dispute may be dismissed.
Medical Evidence and Internal Review
If the dispute involves a medical assessment, the PIC may require a second opinion from an independent medical practitioner. The claimant must provide a full medical record, including the initial assessment, treatment notes, and any reports used to support the claim. The PIC will not accept a medical report that was not provided to the insurer before the dispute was filed.
The PIC allows a claimant to request an internal review of a decision on interest within 28 days of receiving the decision. The internal review must be submitted in writing and must include new evidence not previously considered. The PIC will not accept a review if the claimant has already commenced a dispute with the Commission.
Hypothetical Example
A pedestrian in Sydney’s Inner West was injured in a motor vehicle accident on 10 March 2026. The claim form and medical certificate were submitted to the CTP insurer on 15 March 2026 via email. The insurer did not acknowledge receipt until 20 April 2026 and did not pay the statutory benefits until 10 May 2026. The claimant submitted a formal request for payment on 25 April 2026. The claimant applied to the PIC for late payment interest on 12 June 2026. The PIC accepted the claim for interest because the insurer failed to respond within 14 days of submission and the claimant had provided a clear record of submission and follow-up.
Next Steps
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