Being injured in a car accident is stressful enough. But when you learn that the at-fault driver was uninsured or unlicensed, it can raise even more questions. Will you still be able to claim compensation? Who pays for your treatment and lost income?
In New South Wales, the good news is that the law protects injured road users — even when the person who caused the crash shouldn’t have been on the road in the first place.
Compulsory Third Party (CTP) Insurance in NSW
In NSW, every registered vehicle must have Compulsory Third Party (CTP) insurance, sometimes called a “green slip.” This insurance covers injuries to people caused by the use of that vehicle, regardless of whether the driver is at fault.
If the at-fault driver has CTP insurance (as they should), your claim will usually be made against their insurer under the Motor Accident Injuries Act 2017 (NSW). But what happens if they don’t?
The Motor Accident Injuries Act 2017 was designed to ensure that people injured on NSW roads are not left without support simply because of another person’s wrongdoing — whether that’s driving unlicensed, failing to register their vehicle, or disappearing after a crash.
If the At-Fault Driver is Uninsured
An “uninsured driver” usually means the vehicle they were driving was not registered, and therefore had no valid CTP insurance. Fortunately, NSW has a safety net for these situations.
If you’re injured in a crash caused by an unregistered (and therefore uninsured) vehicle, you can still make a compensation claim through the Nominal Defendant. This is a government body that steps in when there is no insurer to cover the claim.
The Nominal Defendant will effectively act as the insurer for the uninsured vehicle. You can still claim:
- treatment and care expenses
- weekly payments for lost income
- lump sum compensation if you suffer permanent impairment(depending on the severity of your injuries).
The process is similar to a standard CTP claim, but it’s important to notify the Nominal Defendant as soon as possible, as strict time limits apply.
If the At-Fault Driver is Unlicensed
If the driver who caused your accident did not have a valid licence, this does not automatically stop you from receiving compensation. What matters is that the vehicle they were driving was registered and insured.
- If the vehicle was registered and had CTP insurance, you can still make a claim against the insurer, even though the driver was unlicensed.
- If the vehicle was unregistered and uninsured, the claim is again handled by the Nominal Defendant.
It is worth noting that unlicensed drivers may face penalties themselves, including fines or criminal charges, but this does not affect your right to pursue injury compensation.
What You Should Do If You’re Injured In A Car Accident
If you’re injured in a crash caused by an uninsured, unlicensed, or unidentified driver in NSW:
- Report the accident to police immediately — this is crucial for Nominal Defendant claims.
- Seek medical attention — keep all treatment records and medical certificates.
- Lodge an Application for Personal Injury Benefits with the relevant CTP insurer or the Nominal Defendant within 28 days of the accident to ensure backdated benefits.
- Seek legal advice early — strict time limits and paperwork requirements apply. An experienced lawyer can identify the correct insurer (or the Nominal Defendant) and manage the process on your behalf.
Being hit by an uninsured or unlicensed driver can be unsettling, but in NSW you are not left without options. Whether through a CTP insurer or the Nominal Defendant, you can still access treatment, income support, and potentially lump sum compensation for your injuries.
At Law Advice, we have extensive experience helping injured people across NSW navigate complex motor accident claims, including those involving uninsured, unlicensed, or unidentified drivers. If you’ve been injured, we can ensure the right party is held accountable and that you receive the support and compensation you deserve.