CTP Settlements in NSW: How a Damages Claim Is Resolved

What a CTP settlement is

A settlement is an agreement between you and the CTP insurer that resolves your common law damages claim for an agreed lump sum. Once it is signed and approved where required, you generally can't go back and ask for more, even if your condition gets worse. That is why timing and evidence matter so much. See CTP damages claims.

When a claim can settle

A damages claim generally can't be settled within 2 years of the accident unless your whole person impairment is more than 10%. In practice, settlement is usually sensible only once your injuries have stabilised, because future loss of earnings can't be valued properly while your recovery is still unclear.

Keep an eye on the other dates too. Weekly payments can continue while a damages claim is pending, but only if the claim was lodged within 2 years of the accident. See CTP claim time limits.

How negotiations usually work

• Your damages claim is lodged and the insurer investigates it.
• Evidence is exchanged: medical and specialist reports, whole person impairment assessments, earnings records and evidence about your work capacity.
• The insurer makes an offer, or your side makes a demand, and negotiations follow.
• Many claims are negotiated at a settlement conference, in person or online.
• If agreement is reached, the terms are recorded in a written settlement document.

If you don't have a lawyer

If you are not legally represented, a settlement of your damages claim generally needs to be approved by the Personal Injury Commission before it takes effect. The approval process exists to protect people negotiating without advice, but it is not the same as having someone on your side who understands how your claim should be valued.

If you can't agree

If the claim can't be settled, it can go to the Personal Injury Commission for claims assessment. A Commission member assesses the damages. Court proceedings are possible only in limited circumstances.

What to check before you sign

• What exactly the settlement covers, and whether it resolves anything other than your damages claim.
• What happens to your weekly payments and to ongoing treatment and care after settlement.
• How past weekly payments have been taken into account.
• Whether any Medicare or Centrelink amounts must be repaid, and whether a Centrelink preclusion period will apply.
• The legal costs, which are regulated, and exactly how much you will receive.
• Whether your injuries have genuinely stabilised, or whether there is a real risk of future surgery or deterioration.

An offer is not a verdict

An insurer's offer is its view of the claim at that point, based on the evidence it has. It is not a finding about what your claim is worth. Before responding, have the offer assessed against your actual evidence, and don't feel pressured by timing unless a genuine deadline applies. See how much compensation.

When to talk to a lawyer

A settlement is the one decision in a CTP claim that is usually permanent. If you haven't got a lawyer yet, see choosing a CTP lawyer. Talk to an independent CTP lawyer if:

• You have received an offer and aren't sure whether it reflects your future loss of earnings.
• You don't know whether your whole person impairment is above or below 10%.
• Your injuries haven't stabilised, or further treatment or surgery is being discussed.
• You are unsure how Centrelink, Medicare or legal costs will affect the amount you receive.