Who pays the compensation for injuries suffered in a road accident

Who pays compensation for injuries suffered in a road accident


Contact your local team for a free consultation to find out if you are eligible for compensation

Road accidents can be traumatic, and the aftermath often involves not only physical and emotional challenges but also financial burdens. One common concern among those involved in car accidents is, “Who pays the compensation for injuries suffered in a road accident? Do I personally sue the driver who was at fault?” In this blog, we’ll break down the basics of compensation for road accident injuries, helping you understand the key factors involved.


CTP insurance

Compensation for psychical and/or psychiatric injuries suffered in road accidents is paid by the CTP insurer on risk for the motor vehicle at fault for the injuries. Car owners are required by law to take out CTP (aka Green Slip) insurance when a car is registered.

There are several CTP insurers in NSW, namely NRMA, QBE, Allianz, Suncorp/GIO and Youi.

The CTP insurer on risk for the motor vehicle at fault pays the compensation for past and future medical costs, loss of income and income earning opportunities and pain and suffering/loss of enjoyment of life (aka non-economic loss).

If the motor vehicle at fault is not registered and therefore have no CTP insurance cover, the personal injury compensation claims are made against The Nominal Defendant. The same applies where the motor vehicle at fault cannot be identified eg in a hit and run.


What if a family member caused my injuries in a car accident

When a car accident involves a family member behind the wheel, it’s understandable to worry about the implications of making a personal injury claim and seeking compensation.

However, it’s important to know that pursuing a CTP injury claim does not mean you have to sue your family member directly. In NSW, the Compulsory Third Party (CTP) insurance system is designed to address this very concern.

CTP insurance, which is mandatory for all registered vehicles, provides coverage for personal injuries caused by car accidents. If you’re injured in a motor vehicle accident and a family member is at fault, the claim for compensation is made against the CTP insurer of the vehicle involved, not the family member personally. This means that the insurance company assumes financial responsibility for covering your medical expenses, lost wages, and other related compensation costs.


Determining Fault: Impact on Compensation

The question of who pays for injuries is tied to determining fault. If one driver is clearly at fault, their insurance covers the damages. However, in some cases, fault may be shared, impacting the distribution of compensation. This process involves investigations, police reports, and sometimes legal proceedings.


Engaging a car accident injury lawyer

In NSW, it’s not mandatory to hire a lawyer if you’re injured in a motor vehicle accident and want to file a claim under the Compulsory Third Party (CTP) insurance scheme. However, trying to navigate the complex legal system alone is an uneven fight.

Insurance companies have vast experience in managing personal injury claims, with internal and external legal teams. Without a skilled CTP lawyer on your side, you’re at a disadvantage against the insurer’s resources and expertise.

So, if insurance companies are using lawyers, why wouldn’t you? Personal injury lawyers are experts in navigating the legal complexities, ensuring you get the compensation you deserve.

Most personal injury lawyers are prepared to act for injured road accident victims on a no win, no pay basis.



Compensation for all persons injured in road accidents throughout Australia is covered by insurance by CTP insurers and/or by state government insurers.

In NSW, and elsewhere in Australia, compensation for injuries and losses suffered in motor vehicle accidents is paid to the accident victims, even if the motor vehicle at fault is uninsured or cannot be identified.


Contact Stacks Goudkamp For Your CTP Injury Claim

Choosing the right legal representation can significantly impact the outcome of your personal injury claim following a car accident. Stacks Goudkamp stands out as a premier choice for several compelling reasons. With a rich history of specialising in personal injury law, our team is not just seasoned in navigating the complexities of car accident claims; we’re deeply committed to securing the best possible outcome for each client.

Our approach is tailored, ensuring that every case is handled with the utmost care, empathy, and professionalism. Our no win, no fee policy means that accessing top-tier legal services is risk-free, removing financial barriers to the compensation you deserve. Moreover, our track record of successful claims speaks volumes about our dedication and expertise.

At Stacks Goudkamp, we don’t just represent you; we advocate for your right to fair compensation with unparalleled dedication and expertise. Choosing us means partnering with a firm that truly has your best interests at heart, ensuring you receive the support, guidance, and representation you deserve during a challenging time.


I could write a book as to how the last 4 years would have been different if not for Tom and his team.
The support, assistance, advice from the first conversation till even after the settlement was second to none from the team at Stacks Goudkamp.
Four years on and after many downs, my children and I have our lives back.
We are unable to THANK YOU enough, but know that you have changed our lives for the better in so many ways since the accident.