Motor Accident Compensation in NSW: How It Works

“Compensation for a car accident” covers more ground than most people expect. In NSW, every registered vehicle carries CTP (Compulsory Third Party) insurance — the green slip — which exists specifically to cover people injured in motor accidents. Here's how the pieces fit together.

What CTP is (and isn't)

CTP covers injury to people, not damage to vehicles. It doesn't fix dents or pay your excess — that's comprehensive or third-party property insurance, a separate product entirely. CTP applies to drivers, passengers, riders, pedestrians and cyclists injured by a registered motor vehicle in NSW.

Which law applies

For accidents on or after 1 December 2017, the Motor Accident Injuries Act 2017 (MAIA) governs the scheme. Accidents before that date fall under the older Motor Accidents Compensation Act 1999, with different rules — if that's your situation, get specific advice rather than relying on this general guide.

The two tracks: statutory benefits and common law damages

Statutory benefits are the scheme's built-in safety net — weekly payments and funding for reasonable treatment and care, available to most injured people largely regardless of fault. Common law damages are a separate, one-off lump sum claim — potentially covering pain and suffering and economic loss — available only to people who weren't mostly at fault and whose injury is above the threshold injury classification. See our guide comparing statutory benefits and damages for the detail.

How fault changes things

Most injured people can access statutory benefits regardless of fault. If you were wholly or mostly at fault (over 61% contributory negligence), weekly payments and treatment and care are generally limited to the first 52 weeks (26 weeks for accidents before 1 April 2023), and common law damages generally aren't available. Children 16 and under can receive treatment and care for as long as they need it, regardless of fault.

Where disputes get resolved

If you disagree with an insurer decision, most disputes start with an internal review at the insurer. Beyond that, the Personal Injury Commission (PIC) — an independent tribunal that started on 1 March 2021 — handles merit review, medical assessment, miscellaneous claims assessment, and damages claims assessment across the CTP scheme.

Special pathways

Hit-and-run and uninsured vehicles are covered through the Nominal Defendant, a NSW Government-backed fund. Fatal accidents are covered for funeral expenses regardless of fault, with dependants potentially able to claim further compensation. Accidents that happen while driving for work generally need to go through workers compensation first for statutory benefits, though a CTP damages claim against the at-fault driver may still be available.

Where to get help

CTP Assist (1300 656 919), run by SIRA, offers free information and support, and can connect you with the free CTP Legal Advisory Service for statutory benefits questions. For anything involving a dispute, serious injury, or a potential damages claim, a specialist CTP lawyer is worth talking to — our free claim check is a good place to start.

Who actually pays for CTP

In NSW, vehicle owners buy CTP cover — the “green slip” — from a licensed CTP insurer, and it must be in place before the vehicle can be registered. Owners can choose between competing insurers, while SIRA regulates the scheme, the insurers and the premiums they charge. So the system is neither a single government fund nor an unregulated private market — it sits deliberately in between.

How this differs from other states

Every Australian state and territory runs its own compulsory injury scheme for motor accidents, and the rules genuinely differ — some restrict common law damages claims far more tightly than NSW does. If your accident happened outside NSW, or you're comparing what you've heard from someone interstate, treat this guide as NSW-specific and get advice based on where the accident actually occurred.