In another sign that tort reforms are here to stay, the NSW Government has announced the first stage of the new Lifetime Care Scheme, saying it is a landmark reform for children injured in motor vehicle accidents from October this year, regardless of fault.

Insurance Council of Australia CEO Kerrie Kelly has welcomed the move and says the industry supports the scheme and believes it will operate in the best interests of those that need it most – children and their families.

“Children injured in motor vehicle accidents, who may not have been covered in the previous compulsory third party (CTP) scheme, are now covered under the new no-fault benefit,” she said.

“This provides certainty and peace of mind to the injured child’s family, knowing the scheme will financially cover any treatment and rehabilitation the child may need.”

Since 1989 CTP insurers in NSW have co-ordinated funded care programs for about 1000 people catastrophically injured in motor vehicle accidents and paid more than $1.2 billion in damages.

The scheme will be rolled out progressively.