In New South Wales, the Compulsory Third Party (CTP) insurance scheme covers travel and accommodation costs for treatment following a motor accident. This guide explains how insurers assess these expenses, what evidence is needed, and how residents of the Newcastle and Hunter regions can challenge denied claims.
What Travel and Accommodation Costs Are Covered?
Under the Motor Accident Injuries Act 2017, you may claim travel and overnight accommodation costs if they are reasonably necessary for your treatment. This includes:
- Transportation to and from medical appointments
- Overnight stays at a hotel or approved accommodation
- Costs for essential travel during treatment
Insurers must approve these costs as part of your compulsory third party (CTP) claim under the Motor Accident Injuries Act 2017. SIRA (State Insurance Regulatory Authority) provides detailed guidance on what qualifies as a necessary expense.
How Do Insurers Evaluate Necessity?
Insurers assess whether travel and accommodation costs are reasonably necessary based on:
- Medical necessity: Evidence from your treating medical practitioner confirming the cost is essential for your treatment.
- Reasonable cost: Expenses must align with standard rates for the location and type of accommodation.
- Direct connection to treatment: Costs must be directly related to your medical care, not personal convenience.
For example, if you need specialist treatment in Sydney after an accident in Newcastle, travel costs to attend the appointment may be approved. However, a luxury hotel stay would likely be denied.
What Documentation Is Required?
To support your claim, you must provide:
- Medical records showing the need for travel/accommodation
- Receipts for travel and accommodation expenses
- Accident report or police report (if applicable)
- Proof of income if you’re claiming weekly benefits
Insurers may request additional evidence if they dispute the necessity of the costs.
How Can Residents Challenge Denied Claims?
If your claim is denied, you can:
- Request a review through SIRA’s internal dispute process
- Seek independent legal advice to challenge the decision
- Appeal to the NSW Civil and Administrative Tribunal (NCAT) if the dispute escalates
Insurers must provide a written explanation for denied claims under the Motor Accident Injuries Act 2017. If you believe the decision is unfair, you may need to consult a solicitor to explore your options.
Time Limits and Practical Steps
- 52-week rule: After 52 weeks, weekly benefits and treatment benefits are generally limited unless you have a whole person impairment (WPI) of 10% or more.
- 5-year time limit: You must submit your claim within 5 years of the accident date.
Residents of the Newcastle and Hunter regions should act quickly to gather evidence and notify their insurer. Delays can reduce your chances of securing approval for travel and accommodation costs.
When to Seek Legal Advice
If your claim is denied, or if you’re unsure whether your expenses qualify, consider consulting a solicitor. Legal professionals can help you:
- Challenge insurer decisions
- Navigate the claims process
- Understand your rights under the Motor Accident Injuries Act 2017
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.