Huge cuts to compensation for car crash victims, according to Law Society of SA

CAR crash victims are suffering huge cuts to compensation payouts because of State Government regulation changes, the Law Society of SA says.

The average compensation payout under the Compulsory Third-Party scheme had dropped from $152,000 to $68,000 since the changes to the scheme were made in July 2013.

These figures, provided by the Motor Accident Commission, mean that people suffering broken limbs, a loss of vision or even brain damage were struggling and make ends meet, society president Tony Rossi said.

Government changes to the scheme included reducing compensation for lost income and refusing pain and injury compensation for crash victims with “minor’’ injuries.

The scheme was privatised last year as part of the Government’s $2 billion sell-off of Motor Accident Commission assets.

Mr Rossi said figures also showed “the number of claims pursued are lower now because people have realised those claims are not worth pursuing’’.

He said the practical effect of the changes meant “if you haven’t had a severe injury with permanent impairment, you don’t get anything for pain and suffering’’.

“To sell the changes, the Government said CTP premiums would drop $100 but that was only for one year and they went up again,’’ Mr Rossi said.

He is calling on the Government to establish a parliamentary committee to review the impact of the scheme changes.

South Australian senator Nick Xenophon also wants a review, claiming the Government had treated the scheme like a “piggy bank to fill its coffers and balance the budget’’.

“What is happening to crash victims is cruel and there needs to be a review to bring back fairness,’’ he said.

Treasurer Tom Koutsantonis said the law society argument was driven by its own financial interests.

“The changes to the Compulsory Third Party scheme introduced in July 2013 reduced insurance premiums for motorists, while ensuring people’s lifetime care will be covered if they are catastrophically injured in a motor vehicle accident with no one at fault,’’ he said.

“While the Law Society has long criticised our CTP scheme as it affects their hip pocket, the State Government is focused on delivering lifetime support for those who are catastrophically injured in accidents.’’

Mr Koutsantonis said the more complex claims for compensation “take longer to settle and are typically of a higher monetary value’’.

“Therefore the value of settlements for accidents that occurred since July 2013 are not comparable with older claims that have taken longer to finalise,’’ he said.

Source: adelaidenow.com.au