What Changed for Vehicle Modifications in NSW CTP Claims After 2017?
The 2017 reforms to the NSW Compulsory Third Party (CTP) insurance scheme, implemented under the Motor Accident Injuries Act 2017 (MAIA), introduced clearer rules about when and how vehicle modifications can be funded through a CTP claim. Prior to these changes, the assessment of modifications was inconsistent and often excluded if they were not considered medically necessary or directly related to a disabling injury. Since 1 December 2017, the law now provides a more structured framework for claiming funding for vehicle modifications, including hand controls, adapted steering wheels, and other assistive devices, where they are required as a direct result of injuries sustained in a motor accident.
How the Current CTP Scheme Assesses Vehicle Modifications
Under the MAIA, vehicle modifications are considered part of treatment and care benefits. These benefits are available to people who have suffered injuries in a motor accident, regardless of fault. The key legal test is whether the modification is medically necessary and directly related to the injury. The assessment is guided by the Motor Accident Guidelines, which define that a modification must be required for the person to safely operate a vehicle or to access and use a vehicle, and must be recommended by a medical practitioner or allied health professional.
Modifications are not automatically approved. The insurer must assess whether the modification is reasonable and appropriate for the injury, and whether it is necessary for the person to drive or use a vehicle for daily activities. Standard vehicle features such as power steering, automatic transmission, or cruise control are not considered modifications and cannot be claimed under CTP. Only alterations made to a vehicle to accommodate a physical or cognitive impairment resulting from a motor accident are eligible.
Legal Distinctions: Modifications vs. Standard Vehicle Features
A critical distinction under current NSW law is between modifications made to accommodate a disabling injury and standard vehicle features that are part of the vehicle’s original design. For example, a vehicle equipped with automatic transmission is not eligible for CTP funding, even if the driver has a physical injury. However, if a person with a hand injury requires hand controls to operate a vehicle, and a medical practitioner confirms this is necessary due to the injury, the cost of installing hand controls may be covered.
The law does not fund modifications that improve comfort or convenience unless they are medically necessary. For instance, a raised seat for a person with back pain may be approved if the pain is a direct result of the accident and a medical practitioner confirms it is required for safe vehicle operation. Conversely, a heated steering wheel or premium audio system would not qualify.
Practical Steps and Evidence That Matter
To support a claim for vehicle modifications, the following evidence is typically required:
- A written medical report from a treating medical practitioner or specialist confirming that the injury prevents safe operation of a standard vehicle and that a modification is necessary.
- A recommendation from a rehabilitation professional, such as an occupational therapist or driving assessor, outlining the type of modification required and its purpose.
- A quote from a licensed vehicle modification provider detailing the cost and nature of the modification.
- Documentation showing the vehicle is registered and used by the claimant.
It is essential to keep all correspondence with the insurer, including written requests for approval and responses. Delays in notifying the insurer or failing to provide required documentation may result in a claim being denied or delayed.
Time Limits and Dispute Options
There is no fixed time limit for applying for vehicle modifications, but it is advisable to apply as soon as possible after the injury and medical assessment. The insurer must respond within a reasonable time, and if a claim is denied, the claimant may request a review under the SIRA dispute resolution process. If the dispute remains unresolved, the claimant may apply to the NSW Civil and Administrative Tribunal (NCAT) for a determination.
A claim for modifications may also be subject to a review if the injury is later found to have been caused by a pre-existing condition or if the modification is found to be unnecessary. In such cases, the insurer may seek to recover funds already paid.
Hypothetical Example
A 42-year-old driver sustained a spinal injury in a motor accident in June 2024. As a result, they lost full use of their right arm and cannot operate a standard vehicle. Their treating neurologist and an occupational therapist both recommend hand controls and a modified steering wheel. The claimant applies to their CTP insurer for funding. The insurer reviews the medical reports and quotes, and approves the claim. The modification is installed and paid for under treatment and care benefits. The claim is successful because the modification was medically necessary, directly related to the injury, and not a standard vehicle feature.
Next Steps
Every claim depends on its own facts. The availability of funding for vehicle modifications under NSW CTP law depends on the nature of the injury, the medical evidence, and whether the modification is necessary for safe vehicle use. Time limits and procedural requirements may apply. To request contact about the next step, complete the quick, no obligation enquiry form.