Calculating Your Lump Sum Compensation

If you were not at all at fault (or were not mostly at fault) and if your injuries are serious, you may be eligible for lump sum compensation, known as common law damages.


Here, we will help you calculate how much compensation you could expect to receive.

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UNDERSTANDING YOUR CTP CLAIM

There is no ability to claim lump sum compensation for treatment or care or rehabilitation as these are presumed to be paid in the statutory benefits claim.


The value of your claim is influenced by various factors including your age, the type and severity of your injury, your pre-injury earnings, the duration of your absence from work, your future employment plans, and whether you are eligible to claim compensation for pain and suffering.

WHAT CAN YOU CLAIM?

The compensation you can be awarded for your common law lump sum damages claim are as follows:

DAMAGES FOR NON-ECONOMIC LOSS

Damages for non-economic loss or pain and suffering if you have a whole person impairment of greater than 10%.  These are assessed in accordance with Guidelines set by the government.   


This head of damage is also known as pain and suffering or loss of enjoyment of life. It compensates the injured person for the pain, suffering, and loss of enjoyment of life they have experienced as a result of their injuries. The amount of compensation depends on the severity of the injury and its impact on the injured person's life.

Guy writing down damages for a non-economic loss
Guy stressed about past loss of earnings

PAST LOSS OF EARNINGS

Past loss of earnings – because the statutory benefits claim does not cover 100% of your lost wages, you can ‘top up’ the difference between what you would have earned and what the insurance company has paid you. 

 

You may also be entitled to credits for any sick leave or annual leave taken because of your injuries

FUTURE LOSS OF EARNINGS

Future loss of earnings – these are awarded if you have an impairment to your ability to earn and that impairment will be productive of financial loss.   


This includes a claim for any future loss of wages and for your future loss of superannuation.

Nervous hands showing Future loss of earnings

COMPENSATION FOR PAIN AND SUFFERING

Injured accident victims are not entitled to be automatically compensated for pain, suffering and all the ways in which your life has been or will be affected by the injuries your sustained in the accident.

 

In order for you to be entitled to claim compensation for your pain and suffering you have to be found to have a whole person impairment that is greater than 10% in relation to your injuries. 


In some cases the insurer will accept this to be the case but in other matters the insurer will decline to accept an entitlement to compensation for pain and suffering.


It is important to note that in New South Wales, there are limits on the amount of non-economic loss compensation that can be awarded in personal injury cases.


The maximum anyone can receive for pain and suffering is currently $605,000.00.  This amount is indexed on 1 October each year.

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OPERATIVE DATE

MAXIMUM AMOUNT

1ST OCTOBER 2017

$525,000

1ST OCTOBER 2018

$546,000

1ST OCTOBER 2019

$565,000

1ST OCTOBER 2020

$590,000

1ST OCTOBER 2021

$595,000

1ST OCTOBER 2022

$605,000

Get the compensation you deserve with a successful CTP Claim. Navigate the complexities with ease and support with CTP Claim Guide & Stacks Goudkamp.

HOW LONG WILL MY CTP CLAIM TAKE?

Several factors can influence the duration of a lump sum compensation claim, including the CTP insurer's perspective on the severity of your injury and settlement negotiations, the need for surgical intervention, the extent of post-surgery rehabilitation, and potential delays in the dispute resolution process caused by the global pandemic.


Once your lump sum damages claim is finalised there are no further weekly income payments. 


You will continue to receive payment of your medical, rehabilitation and other treatment expenses on an ongoing basis subject to the CTP insurer consider the need reasonable and necessary.

Car with a Destroyed Frontend after an accident

FREQUENTLY ASKED QUESTIONS

  • What If I Disagree With The Amount The Insurance Company Offered?

    The calculation of lump sum compensation in CTP claims typically considers factors such as the severity of the injury, the impact on the person's life, medical expenses, loss of income, future earning capacity, and any other financial losses incurred due to the accident.


    If you disagree with the offered lump sum compensation amount you should seek advice from an expert CTP lawyer.

  • Do I Have To Pay Tax On My Lump Sum?

    Tax implications may vary depending on the jurisdiction and the specific components of the compensation received.  CTP lump sum compensation in New South Wales is tax free.

  • Can I Also Make A Claim Under My Superannuation Policy?

    Yes.


    Sometimes we find that clients who were in employment at the time of the accident and who have been off work for a substantial period or who have had their earning capacity destroyed, also have rights under a superannuation policy.  


    There is a six-year limitation period which applies specifically to superannuation claims.  This means that your claim would need to be commenced within six years of the date your rights to the superannuation compensation crystallised.  

  • How Is Loss Of Income Calculated?

    Loss of income is calculated based on the injured person's pre-accident income, their capacity to work post-accident, and the potential impact on their future earnings.

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Submit the form below and we will have one of our expert CTP lawyers reach out to learn more about you and your circumstances and see if you are eligible. Start the CTP claim process now to get the compensation you deserve.