Earlier in 2021 changes were made to the Motor Accident Injuries Act 2017. The changes have impacted the possibility of employers to claim or pursue recoveries for costs associated with motor vehicle accidents under CTP Insurance & minimise the impact on their workers compensation Premiums.
The Motor Accident Injuries Act 2017 changes took affect from 1 March 2021 and since then in NSW if a worker has sustained injuries which are deemed minor during a motor vehicle accident that occurs during work hours, a recovery under CTP will not be possible and the totality of the costs associated with the claim will fall under the workers compensation Policy.
Section 4.4 of the Motor Accident Injuries Act 2017 does not allow recovery when the worker has sustained minor injuries (defined as soft tissue injury in section 1.6). Non minor injuries include injuries such as fractures or injuries where surgery is required.
Part 5 of the Motor Accident Guidelines: Minor injury (Soft tissue & minor psychological or psychiatric injuries) identifies injuries deemed minor. Please refer to the below links to the SIRA for the detailed definition of minor and non-minor injuries and how they are assessed.
What does this mean for businesses & their workers compensation policy? Each accident or worker injury will need to be assessed. Historically if the worker was injured whilst driving for work purposes, then the costs of the workers compensation claim could be typically recovered from a CTP claim. These changes will result in fewer workers compensation claim related recoveries being made against CTP claims & therefore the risk of higher workers compensation premiums could result.
If you have a worker that is injured whilst driving for work, please contact us to discuss.
Source: SIRA NSW
Title: Understanding Minor Injury
Read Time: 7 minutes
Source: NSW Government
Title: Motor Accident Guidelines
Read: Time: >1 hour