Recent analyses of Queensland’s Compulsory Third Party (CTP) insurance scheme reveal significant differences in outcomes between self-represented claimants and those with legal representation. The Motor Accident Insurance Commission (MAIC), in collaboration with actuarial firm Taylor Fry, has highlighted these disparities in their annual reviews.
The Rise of Self-Representation
Insurers have increasingly promoted direct claims initiatives, encouraging claimants to forgo legal representation. These initiatives often advertise benefits such as retaining 100% of compensation and simplified claim processes. However, Taylor Fry has linked these practices to a growing proportion of self-represented claimants, raising concerns about the fairness and adequacy of compensation received by these individuals.
Impact on Compensation Outcomes
While specific figures from the December 2024 Taylor Fry report are not publicly available, previous analyses have consistently shown that self-represented claimants tend to receive lower compensation compared to those with legal representation. Legal professionals can navigate the complexities of the claims process, advocate effectively for their clients, and ensure that all entitlements are fully pursued.
The table below outlines the average settlement amount of claims classified as “minor claims” by insurance companies. A legally represented claimant receives, on average, 7.5 times more compensation than a self-represented claimant.
More concerning, however, is that self-represented claimants receive approximately one-third of the amount of insurer-funded treatment and rehabilitation than those who are legally represented.
Insurers often discourage self-represented claimants from obtaining legal advice by providing incorrect (or incomplete) information.
The facts speak for themselves: legally represented claimants obtain fairer outcomes than those who are self-represented.
Considerations for Claimants
Given the potential for reduced compensation, individuals involved in motor vehicle accidents in Queensland should carefully consider the benefits of legal representation. Engaging a qualified lawyer can provide guidance, protect rights, and help secure fair compensation.
Conclusion
The disparities in compensation outcomes between self-represented and legally represented claimants underscore the importance of informed decision-making in the aftermath of a car accident. As the MAIC and Taylor Fry continue to monitor and report on these trends, it remains crucial for claimants to understand the implications of self-representation and the potential benefits of legal assistance.
