Motor vehicle injury compensation - how does the system work?
The Insurance Commission of Western Australia ("ICWA") administers the Compulsory Third Party ("CTP") motor vehicle insurance scheme in Western Australia. In 2018 ICWA generated more than $1.5 billion in revenue and earnings and paid $391 million in compensation payments to people injured in motor vehicle accidents.
When a negligent motor vehicle driver injures another driver, passenger, cyclist or pedestrian the injured person is able to make a claim for personal injury compensation. When ICWA receives an application for compensation it assess the claim and then makes a decision regarding liability. If ICWA accepts liability for the accident and the injuries caused, it indemnifies or takes the place of the negligent driver in legal proceedings that seek compensation for the claimant. Put simply ICWA becomes the defendant in these proceedings and the injured person or plaintiff is then able to sue ICWA for damages under the CTP scheme.