"Ridiculous" road-damage claim scheme under scrutiny
The current compensation scheme for road damage - currently under review by the government - has been described by one former resident as "just ridiculous".
More Victorians are searching online for compensation claims, but the current scheme - which is currently under review by the government - has been described by one former resident as "just ridiculous".
Malcolm Russell commutes to the island around four times a week for work, and said he recently incurred nearly $1000 in damage to his car along a 100km/h stretch of the Healesville-Koo Wee Rup Road between the South Gippsland Highway and Monash Freeway.
"It was about seven o'clock at night and there was just this almighty bang," he said. "I hit this pothole, blew up the tire and cracked the rim on the left-hand-front."
The former island resident said he was familiar with most of the potholes along his regular commute, but did not expect such a significant defect on a road that had recently undergone major upgrades.
"It's a brand new road, and it was just not something I was expecting," he said.
Malcolm said the roadside assistance mechanic - who had responded to a car damaged by the same pothole the day before - told him he was able to make a damage claim with the Department of Transport and Planning (DTP).
"I rang our insurance company, they didn't seem to know a lot about it, and said to speak to VicRoads, so I got online and had a look," he said.
Malcolm's story is far from isolated.
According to Google Trends data based on Victorian queries, average interest in the search term 'vicroads damage claim' has skyrocketed in the past year.
The Victorian Government's 'Notice of incident and Claim' webpage has stated they "are currently experiencing higher than usual demands" from at least September 2024.
1.3 per cent of claims paid out
Official government data shows the number of road-related damage claims have increased, but only a miniscule fraction of the claims lodged paid out.
According to documents released by the DTP under Freedom of Information and republished by Drive.com.au, in the last two years less than 1.3 per cent of all assessed claims were successful.
Only 23 of the 1809 claims assessed by the department since the start of the 2024-25 financial year were "assessed as payable".
The government is currently reviewing the scheme following sharp backlash over the low payout rates, with the Minister for Roads telling the ABC earlier this month they would "make it easier" for Victorians to receive compensation.
As it currently operates, Malcolm said the scheme was not fit for purpose, with strict restrictions on what incidents are deemed eligible for compensation.
The Victorian Government states they are "unlikely to be liable" for damage in a number of circumstances, including when DTP crews have complied with Road Management Plan standards.
Large portions of the Healesville-Koo-Wee-Rup Road, where Malcom's car was damaged, are classified as 'Road Maintenance Category 3' (RMC3).
Under compliance standards in the Road Management Plan 2026, potholes more than 30cm wide and 10cm deep on RMC3 roads require crews to "inspect and rectify, if feasible, or provide appropriate warning" within seven days.
"Where because of the nature of the work required, level of resources required or workload... appropriate warning of the hazard is to be provided ... until a suitable repair or treatment can be completed," the report states.
From 2025 to 2026, the VAGO report found the defect backlog on Victorian roads had grown by 119 per cent.
But regardless of whether DTP's road management standards were met, he was unable to claim compensation.
Claims for damage under the threshold of $1681 are also ineligible under the current scheme, and the full threshold amount is subtracted from eligible claims.
Damages incurred from pothole damage, including repairs like Malcolm's $1000 bill for a busted rim and tire, fall well below the threshold for compensation.
"It's just ridiculous, really," Malcolm said.
"I suppose a lot of that stuff is just about scaring people away from claiming, they just get on with their lives and can't be bothered with the hassle."
Pothole search interest surges
Google Trends data also points to a significant increase in Victorian public interest in potholes over the past year, as November's state election looms.
In the past year alone, average interest in the term 'potholes' on the search engine has surged by 1200 per cent.
Since 2021, search interest for the term 'report potholes' increased by more than 100 per cent, and was the second most popular pothole related query behind 'potholes victoria'.
Malcolm said he thought some of Victoria's pothole-frenzy was overblown, but there was no doubt the roads were in a sorry state.
"I have noticed a deterioration over time, but I don't think it's anything particularly unique to us here in Victoria."
"It's a massive job maintaining our roads ... I'm not going to bag them (the State Government) out."
This content is part of a paid partnership with Google to promote Google Trends.
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