A no-fault compulsory third party (CTP) scheme will be introduced in WA by July next year, the state’s budget has confirmed.

Each year about 92 people are catastrophically injured in WA crashes. Of these, about 44 receive no compensation because they cannot assert fault.

The Insurance Commission of Western Australia (ICWA) published a green paper last year seeking submissions on three options: no change; a no-fault scheme for all catastrophically injured people; and a no-fault scheme just for those not currently covered.

Under option three, victims able to prove another driver’s negligence would still be eligible to claim a lump sum, while the rest would have to rely on regular payments under the scheme.

The Insurance Council of Australia (ICA) and insurers including IAG and QBE had backed option two, while legal groups preferred option three.

ICWA Commission Secretary Kane Blackman told insuranceNEWS.com.au the scheme to be implemented – while technically option three – is a “best of both worlds” approach.

“The right for those who can prove negligence to claim a lump sum payment has been retained, but enhancements have been made to the existing scheme so everyone can have long-term care,” he said.

Only catastrophic injuries will be covered by the no-fault scheme.

The additional premium for a family car will be $99 for the first year, bringing the cost of CTP to about $400 from July 1. This is still cheaper than SA ($476), Victoria ($487), NT ($531), NSW ($612) and the ACT ($603). However, WA will become more expensive than Queensland ($323) and Tasmania ($338).

ICA has welcomed the scheme, saying it is “in line” with option two.

“ICA supported this option because it was consistent with the NSW Lifetime Care and Support Scheme and other jurisdictions including the ACT and SA,” a spokesman told insuranceNEWS.com.au.