The Productivity Commission suggested the creation of a National Injury Insurance Scheme (NIIS) which would work alongside the National Disability Insurance Scheme to create a national system of injury and disability support. The NIIS would provide life time care and support for people who are catastrophically injured, including in motor vehicle accidents

Following this report, the State Government have recently announced the introduction of a no-fault catastrophic CTP injury insurance scheme to commence on 1 July 2016.

What will the no-fault catastrophic CTP injury insurance scheme cover?

While the legislation has not been finalised, it is understood that catastrophic injures are defined as spinal cord injuries, traumatic brain injuries, multiple amputations, severe burns or permanent traumatic blindness.

Percentage breakdown of where catastrophic injuries occur

The Australian Treasury National Injury Insurance Scheme Issues Discussion Paper indicates that the main causes of catastrophic injury can be categorised into four areas:

• Motor vehicle accidents (approximately 50 percent of all catastrophic injuries);
• general and criminal injury(32percent);
• medical accidents;(11per cent);and
• work place accidents(8per cent).


What does the change mean for injured people

No one is expects to be injured. When it happens, the outcome can be quite extreme. With the introduction of no-fault catastrophic CTP injury insurance scheme, catastrophically injured people can now apply for compensation regardless who is at fault.

For example, Foyle Legal recently encountered a situation where the injured person had what seemed like a modest fall at his girlfriend’s house which rendered him a paraplegic. Under the current personal injury law system, this catastrophically injured person must prove fault in order to claim compensation. Unfortunately for him, the accident happened when he voluntarily provided assistance for a simple home duties and it is likely that he will be unable to prove liability. He now is thrown into a situation where his future looks bleak, his physical health is likely to be permanently altered and his earning capacity and life generally will never be the same again.

There are lots of examples out there similar to this, where a catastrophically injured person will need care for the rest of their lives but they are not currently entitled to compensation. Just to give you an idea how much it costs to care for a person over the course of their lifetime, it was stated in a recent media release by the Western Australian government which stated “The cost of providing lifetime care for people catastrophically injured in motor vehicle accidents is estimated to be an average of $4 million per person over the course of their lifetime”. Under the new no-fault catastrophic CTP insurance scheme, injured people who previously have no claim can now make a claim for the amount appropriate to their circumstance. An experienced personal injury lawyer could help injured people to negotiate the fair complementation amount the injured people is entitled to.

Foyle Legal
6/2 Carson Road
Malaga, Perth, WA 6090
Phone: 0408 727 343
www.foylelegal.com