Canberra drivers injured on NSW roads could miss out on hundreds of thousands of dollars from the change to a partial no-fault accident compensation model, a leading lawyer said.
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Carroll & O'Dea Lawyers partner Diana Farah said the significant reduction of lump sum payments for pain and suffering and removal of compensation for voluntary care of the injured by family would unfairly force people on to government welfare.
"This will really hurt people, people will basically be left to rely on family and if they are not be able to work, Centrelink," she said.
Damages for pain and suffering were available to those who could show a "whole person impairment" of more than 10 per cent.
The accident law expert said many clients who were not "10 per cent" now received significant compensation and had serious injuries which left them unable to work. She was aware of one example where a man who was assessed as 17 per cent impairment and received $275,000 would receive about $43,000 under the new compulsory third party insurance model, expected to be made law for a July 2017 start.
The changes are highly relevant for Canberra residents, with ACT registered vehicles having the highest percentage of interstate travel of all Australian jurisdictions (22 per cent), and 86 per cent of this being in NSW.
The risk of fatality or injury for ACT vehicles or drivers/riders was about three to five times greater on NSW roads than within the ACT on a kilometres travelled basis, a report by ARRB said last year.
The NSW government has said the change to a "hybrid" CTP insurance scheme would lead to lower premiums for drivers – with savings estimated at $80-$100 per year – and faster claims resolutions.
For all injuries not classed as serious there would be no need to prove fault, removing work for lawyers, with defined benefits set by law covering loss of earnings and medical expenses for up to five years, and professional attendant care help for everyday tasks for up to two years. Ms Farah slammed the proposed capping of the earnings compensation at about $1500 per week, down from almost $4000 per week.
The government has criticised the fact that only 45 cents in every dollar collected by CTP insurers now goes to injured people as benefits.
Fairfax Media understands recommendations from an expert reference panel will be provided to the relevant NSW minister this month ahead of legislation being tabled during Parliament's spring session.
The changes will have no bearing on vehicle or property damage claims.
