Indexation of Statutory Weekly Benefits for Accidents After 1 Dec 2017
Published 04 Oct 2018
All GMP clients who are receiving weekly benefits from the CTP Insurers should be aware that their weekly benefits are subject to indexation. Insurers as at the 1st October 2018 were required to apply a 1.6% increase to their pre-accident weekly earnings. The insurers will continue to pay statutory benefits in accordance with the entitlements pursuant to the Motor Accident Injuries Act. Section 3.22 of the Motor Accident Injuries Act 2017 requires the amount of weekly payment of statutory benefits to be reviewed and varied after the first 13 weeks from the date of your motor vehicle accident.
This process is called indexation and requires your pre-accident weekly earnings to be indexed in accordance with the New South Wales publish rates. The current New South Wales average weekly earnings publish rates is 1.6%. Indexation will continue to occur on the half yearly basis that being 1st April and 1st October of every year provided you continue to be eligible for weekly benefits. For example, if you are weekly benefits as at February or March the insurer was obliged to index your pre-accident earnings in April. If you continue to be on weekly benefits a further indexation and increase of 1.6% should have occurred as at 1st October.
If you are continuing to receive weekly benefits please immediately email the insurer to request they confirm that the indexation and increase has been applied.