The New South Wales motor accidents scheme is a privately underwritten compulsory third party (CTP) personal injury insurance scheme overseen by the MAA. CTP (Green Slip) insurance policies are only available from private insurers licensed by the MAA. There are currently seven insurers in the market managed by five insurance companies – NRMA, QBE, Allianz (Allianz and CIC-Allianz), Zurich and Suncorp (AAMI and GIO). Prices vary between insurers and the MAA offers a price comparison service and encourages motorists to ‘shop around’ for their Green Slip.
The motor accidents scheme is a modified common law, primarily fault-based scheme, operating under the Motor Accidents Compensation Act 1999. This means that everyone who is injured in a motor vehicle accident in New South Wales that is caused through another driver’s fault is entitled to claim for compensation. In some cases the person at fault may also be eligible to claim.
Compensation entitlements include current and future medical, rehabilitation and treatment expenses, domestic assistance, past and future lost earnings, and in cases of injuries involving ongoing impairment, damages for non-economic loss or pain and suffering. Compensation for pain and suffering may be reduced in cases where the injured person is partly to blame for their injuries. Unlike some other compensations schemes, the CTP scheme pays for medical and treatment related costs as they are incurred. When injuries stabilise the claim is settled with a lump sum payment for future losses. A claim cannot generally be reopened after it is settled.
Compensation payments made under the motor accidents scheme are fully funded from CTP insurance policies, known as Green Slips. It is compulsory for all motorists in New South Wales to purchase a Green Slip from a licensed CTP insurer before registering their vehicle. The motor accidents scheme also incorporates a Nominal Defendant scheme, which provides compensation for injuries that result from motor vehicle accidents caused by the fault of an owner or driver of a vehicle that is uninsured or unidentified.