The NSW Government has introduced a $285 million “no-fault” compensation scheme for children and lifetime care for adults catastrophically injured in motor vehicle accidents.

The scheme, to be funded by a $20 rise in compulsory third party (CTP) premiums in NSW, will provide “no fault” cover for people who haven’t been able to claim under the state’s reformed liability legislation on medical treatment, educational and rehabilitation services.

The scheme will also provide lifetime treatment and nursing care for victims of car accidents who receive severe injuries such as paraplegia, quadriplegia and traumatic brain injuries.

The no-fault benefit for children will come into effect from October 1 with the benefit for the catastrophically injured commencing 12 months later.

NSW Premier Morris Iemma says the historic reforms to CTP insurance will ease the burden of care and financial strain on mostly young accident victims and their families.

“We are providing a practical, compassionate safety net for future motor vehicle accident victims who would not be compensated under existing arrangements,” he said. “Adults suffering catastrophic injuries in a motor vehicle accident will be supported for life, regardless of who caused the accident.”

NSW Finance Minister John Della Bosca says the expanded benefits were enabled by substantial reforms already made by the NSW Government.

“The cost of a green slip has fallen from half the average weekly earnings in 1999 to less than a third today,” Mr Della Bosca said. “That very significant price reduction means the Government can expand the scheme benefit, covering treatment expenses, rehabilitation and care.”

Mr Iemma says currently when a child runs out onto the road or rides their bike into the path of a car, they may not be entitled to benefits. 

“This is because under the current principle of fault in motor vehicle accidents, the driver is sometimes not ‘at fault’.  For an average yearly premium increase of $20, green slip insurance will now cover the cost of medical treatment, rehabilitation and care for all children aged under 16 years injured in traffic accidents.”