14 August 2025

Many workers spend part of their day behind the wheel—whether making deliveries, attending off-site meetings, or transporting goods. If you’re injured in a motor vehicle accident while performing work duties, you may be entitled to compensation through both the workers compensation system and the Compulsory Third Party (CTP) insurance scheme.

While each scheme operates under different legislation, they can overlap in work-related road accident scenarios. Understanding how they interact is key to accessing your full legal entitlements—while avoiding duplication of benefits.

When Is a Driving Injury Covered by Workers Compensation?

If you are injured in the course of employment, including while driving between job sites or making work-related trips, you are generally covered by the Workers Compensation Act 1987 (NSW). This entitles you to:

These benefits are available on a no-fault basis, meaning you don’t need to prove that your employer caused the accident. Claims are typically lodged with your employer’s workers compensation insurer and overseen by the State Insurance Regulatory Authority (SIRA).

CTP Insurance and Motor Accident Compensation

In parallel, all registered vehicles in NSW must be covered by Compulsory Third Party (CTP) insurance. This scheme, governed by the Motor Accident Injuries Act 2017 (NSW), provides compensation to anyone injured in a motor vehicle accident—whether they were a driver, passenger, cyclist, or pedestrian.

If your work-related driving injury was caused (at least partially) by another vehicle, you may also be entitled to:

  • Income support
  • Medical and care expenses
  • Lump sum compensation for permanent impairment
  • Common law damages (if someone else was at fault)

To claim these benefits, you must lodge an Application for Personal Injury Benefits with the CTP insurer of the at-fault vehicle. Importantly, to receive backdated income support, the claim should be made within 28 days of the accident.

Can You Claim Under Both Schemes?

Yes—but with restrictions. A worker injured in a vehicle accident while working may initially receive benefits from both workers compensation and CTP insurers, but they cannot be compensated twice for the same loss.

Under section 3.37 of the Motor Accident Injuries Act, CTP statutory benefits must be reduced by any amount received under a workers compensation claim for the same injury. This mechanism prevents "double-dipping", while still allowing injured persons to access the most beneficial entitlements available.

For example, if your employer’s insurer is paying your weekly wages under workers compensation, the CTP insurer will not duplicate that payment. However, you might still be eligible to claim medical expenses or damages through the CTP scheme if they are not fully covered by workers compensation.

Common Law Claims: Choosing the Right Path

In serious injury cases, you may be eligible to pursue a common law claim—either against your employer (for negligence) or another driver (for causing the accident). These are known respectively as:

  • Work Injury Damages, under section 151H of the Workers Compensation Act, requiring ≥15% whole person impairment and proof of employer negligence.
     
  • CTP Common Law Damages, available where another party was at fault and you suffer ≥10% permanent impairment.

Critically, you cannot recover common law damages from both schemes for the same injury. Once you elect to pursue one, your statutory entitlements may be restricted or cease entirely under section 151A of the Workers Compensation Act.

Choosing the right avenue depends on factors such as who was at fault, the severity of your injuries, and the financial value of each potential claim. Legal advice is essential when navigating this choice.

Protecting Your Entitlements With The Right Advice

Being injured in a vehicle while working triggers two potentially overlapping compensation systems in NSW. While it is possible to claim under both workers compensation and CTP insurance, the law ensures no duplication of benefits—and choosing the right path for long-term compensation often requires strategic legal advice.

At LawAdvice, we help injured workers understand their rights and navigate complex dual-claim scenarios. If you've been injured on the road while working, contact our team for a free consultation. We’ll ensure you receive everything you're entitled to.

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