How Vehicle Modifications Affect CTP Claims in NSW
If you have suffered a disabling injury in a motor accident in NSW and require vehicle modifications such as hand controls, steering aids or adapted seating, you may be entitled to claim these as part of your motor accident compensation under the Compulsory Third Party (CTP) scheme. These modifications are considered reasonable and necessary medical and assistive equipment under the Motor Accident Injuries Act 2017 (MAIA). The insurer must fund modifications that are directly related to your injury and required for you to drive safely and independently. However, disputes may arise over whether the modification is appropriate, whether it is funded through CTP or another scheme, or whether the insurer has refused to approve the modification.
Dispute Resolution Options for CTP Claims Involving Modifications
If your claim for vehicle modifications is denied or not fully approved by the CTP insurer, you have several dispute resolution options under the SIRA (State Insurance Regulatory Authority) framework. The first step is to request an internal review from the insurer. Insurers must respond within 28 days of receiving a formal request. If the insurer upholds their original decision, you may proceed to a formal dispute resolution process through the Personal Injury Commission (PIC), which is the independent body that handles CTP disputes in NSW.
The PIC process allows you to present evidence, including medical reports, quotes from qualified vehicle modification providers, and documentation showing how the modification is essential for your safe return to driving. The PIC will assess whether the modification is reasonable, necessary, and directly related to your injury. You may also request a medical assessment if the insurer disputes the need for the modification.
How SIRA Handles Disputes Related to Modified Vehicles
SIRA oversees the CTP scheme and provides clear guidance on dispute resolution for claims involving vehicle modifications. Under the MAIA, insurers are required to fund reasonable and necessary modifications that enable an injured person to regain mobility and independence. SIRA’s role is to ensure that decisions made by insurers are consistent with the law and the Motor Accident Guidelines.
If a dispute proceeds to the Personal Injury Commission, the Commission will consider whether the modification is clinically justified and whether the cost is reasonable. For example, a quote from a licensed vehicle modification provider that includes a breakdown of parts and labour, along with a medical report stating that the modification is required due to loss of hand function or reduced upper limb strength, will strongly support your claim.
SIRA does not determine the outcome of individual disputes. Instead, it ensures the process is fair and transparent. The Commission’s decision is binding on the insurer, and if the insurer fails to comply, SIRA may take enforcement action.
Practical Steps and Evidence That Matter
To support a claim for vehicle modifications, you should gather and preserve the following evidence:
- A medical report from your treating practitioner or a specialist confirming the nature and impact of your injury on your ability to drive.
- A detailed quote from a licensed vehicle modification provider, including the type of modification, cost, and a statement that it is medically necessary.
- Documentation showing that the modification is not available through any other government or welfare scheme.
- A record of all correspondence with the insurer, including written requests for approval and responses.
- Photographs of the vehicle before and after modification, if applicable.
For example, a hand control system may be approved if you have a spinal cord injury affecting upper limb function, but not if you have a temporary injury with full recovery expected.
Time Limits and When to Seek Advice
There are time limits that apply to CTP claims in NSW. You must notify your insurer of your claim within three months of the accident, although you may still be able to claim after that period if you have a valid reason. The time limit for making a claim for vehicle modifications is the same as for other CTP benefits.
If you are involved in a dispute over a vehicle modification, it is advisable to seek legal or independent advice as early as possible. Delays in raising a dispute may affect your ability to recover costs, particularly if the insurer has already paid a portion of the claim or if the modification has already been installed.
Hypothetical Example
A 42-year-old driver in Sydney sustained a spinal injury in a motor accident in October 2026. As a result, they lost full use of their right arm and can no longer operate a standard vehicle. They applied to their CTP insurer for funding of hand controls and a modified steering column. The insurer initially refused, citing that the modification was not 'medically necessary' under the Motor Accident Guidelines. The claimant requested an internal review, which was denied. They then lodged a formal dispute with the Personal Injury Commission, supported by a medical report from a neurologist and a quote from a licensed vehicle modification company. The Commission ruled in favour of the claimant, finding that the modification was reasonable, necessary, and directly related to the injury. The insurer was required to fund the full cost.
Next Steps
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.