Accident Compensation Myths Busted – Myth Number 1

Myth Number 1 – ‘Accident Compensation schemes are wrought with frauds and malingerer’

This statement is unsurprisingly false.

Statistics provided by the Motor Accident Insurance Commission [1] show that in 2011 – 2012 [2] there were more than 3.6 million registered vehicles in Queensland [3]. In that same year, 6,900 claims were made for CTP compensation, not at all a culture.

More importantly, according to Department of Transport classifications known as a “Casualty; Fatality; Severity” which divide severity of the accident from:-

  1.  Hospitalisation;
  2.  Medical treatment;
  3.  Minor treatment,

Only one claim is made for every two casualties which fall in category (1) – (3).  Not only does this mean that Queenslanders tend to be by and large genuine claimants, it also suggests that for various reasons, a large portion of victims are not pursuing a claim.

For Workers’ Compensation, according to annual Q-Comp statistic reports in 2012 – 2013 [4], 99,000 claims for statutory benefits were accepted that year.  In the same year, around 3,600 common law claims were successfully made and settled on average for $170,000.  In the same year 8 cases were prosecuted for fraud.

The data shows that despite the stigma associated with ‘compo’, we are far from seeing a culture of compensation and in reality, there remains a large proportion of the population who are largely unaware of their entitlements.

For Further Accident Compensation Information

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[2] statistics in this area are usually 3 years delayed

[3] That number is likely to exceed 4 million in 2014 – 2015


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