Pothole Compensation: Hundreds Paid, Thousands Missing Out

Hundreds of NSW drivers have successfully claimed compensation from Transport for NSW (TfNSW) for pothole damage – but thousands more may be missing out on payouts they didn’t know they could access.

Despite the NRMA receiving more than 300 callouts a day for pothole-related damage in early August, official data shows just 688 claims were lodged in the past financial year.

Through TfNSW’s public liability scheme, motorists can seek compensation for damage caused by hazards on state-managed roads. Claims require details of the incident, photographs of the pothole, and two repair quotes or a tax invoice.

Each case is assessed on whether TfNSW was aware of the defect, if inspection and maintenance schedules were followed, and whether repairs were completed within the required timeframe. Some matters may be referred to councils or contractors.

TfNSW warns claims will be denied if investigations show the agency met its obligations or had no prior knowledge of the pothole. The process generally takes four to six weeks, though drivers can also lodge claims through their insurer.

The department is also urging road users to report potholes by calling 131 700.

Make a Claim Here