Lump sum damages in a CTP claim: the short version

Who may be able to claim

You may be able to claim common law damages if another driver was at fault and your injury is more than a threshold injury. If you were wholly or mostly at fault, your right to damages may be limited or unavailable, and any damages are reduced for your share of the fault. Get legal advice.

See threshold injury and if you were at fault.

What it can cover

• Past and future loss of earnings (economic loss).
• Some related costs, such as certain accommodation or travel costs caused by the injury, and the cost of managing a lump sum.
• Pain and suffering, loss of quality of life and disfigurement (non-economic loss), but only if your permanent impairment is more than 10%.

Damages don't include treatment and care costs. Treatment and care isn't paid as part of a lump sum. Reasonable and necessary treatment and care can continue after a damages claim settles.

Whole person impairment (WPI) is a percentage that measures how much a permanent injury affects your body as a whole. It's assessed using the Motor Accident Guidelines, usually once your injury has stabilised. Physical and psychological injuries are assessed separately and can't be added together to get over 10%.

The dates

• A damages claim must generally be made within 3 years of the accident.
• Lodge it within 2 years if you want weekly payments to continue beyond 2 years.
• A claim made after 3 years may only be allowed with a full and satisfactory explanation for the delay.

Your other dates, worked out from your accident date: CTP claim time limits.

Settling without a lawyer

If you are not represented by a lawyer, a damages settlement must be approved by the Personal Injury Commission before it can take effect.

Before you agree to anything, check how a lump sum affects Medicare and Centrelink. If your claim settles for more than $5,000 (including legal costs), you'll generally need to repay related Medicare benefits from your compensation. A lump sum can also affect Centrelink payments for you or your partner. More in what you can claim.

Why this is usually the time for a lawyer

The CTP Legal Advisory Service covers statutory benefits questions only. It can't advise on damages claims.

For common law damages claims, the maximum legal costs a lawyer can charge are capped by the Motor Accident Injuries Regulation. Ask any lawyer for a written costs agreement and an explanation of how fees are worked out.

How we can help

If you'd like to talk to a lawyer about damages, we can introduce you to an independent CTP lawyer experienced in motor accident claims. You decide whether to go ahead.

We're not a law firm or a medical practice. If your case calls for it, we can introduce you to an independent CTP lawyer or a doctor experienced with CTP claims.

Check the current rules

Rules change. This page reflects the rules as we understand them in September 2026. General information, not legal advice.