When your claim is ready to settle, the CTP Insurer will make you an offer in writing. Alternatively, you can send an offer to the insurer.

If the insurer makes an offer, they will explain how much they are offering, and what evidence they are relying on.

You can accept this offer, or reply with a counter-offer. The counter-offer should explain what amount you think is appropriate, and include reasons why. Sometimes, this process invovles some negotiation with the insurer.

Settlement reductions

If one or more of the following apply, your settlement amount will be reduced. The insurer will tell you if this happens.

Where the injured person did something that partly caused the accident.

The settlement will be reduced, depending on what percentage responsible the injured person was.

For example, this might apply to a driver if the accident was partly caused because they:

  • Were speeding or driving unsafely
  • Could have, but didn't, move out of the way of another vehicle
  • Failed to give way.

For example, this might apply to a pedestrian if the accident was partly caused because they:

  • Ran onto the road from between parked vehicles
  • Were jaywalking
  • Were affected by drugs or alcohol.

If you receive compensation for not being able to work and earn money ('economic loss'), it will be reduced by 20%.

This is legally required by section 56A of the Civil Liability Act 1936.

Find out more about economic loss.

Compensation may be reduced by 25% or more if:

  • You were drink or drug-driving, and this is partly what caused the accident
  • You were at least 16 years old, a passenger, and you knew (or should have known) that the driver was intoxicated.

Compensation will be reduced by 25% if you were at least 16 years old when the accident happened and:

  • You should have been wearing a seatbelt, but you weren't
  • You should have been wearing a helmet, but you weren't
  • You weren't properly sitting in the passenger compartment of a vehicle, when you should have been.