A threshold injury under the Motor Accident Injuries Act 2017 (NSW) includes a soft tissue injury and a psychological or psychiatric injury that is not a recognised psychiatric illness (adjustment disorder and acute stress disorder are the usual examples; s 1.6 and Motor Accident Guidelines Part 5).
Burn injuries sustained in a vehicle fire are serious and can significantly impact a person’s ability to return to daily activities. In New South Wales, the Compulsory Third Party (CTP) insurance scheme, governed by the Motor Accident Injuries Act 2017, provides financial support for such injuries. This support includes treatment and care benefits, weekly income payments, and, where appropriate, damages for pain and suffering and loss of enjoyment of life. The scheme operates regardless of fault, meaning that even if the injured person contributed to the accident, they may still be entitled to benefits. However, the extent of entitlement depends on the nature and severity of the injury, the duration of functional limitations, and whether the injury meets the threshold for damages under the Act.
The Motor Accident Injuries Act 2017 sets out the framework for assessing burn injuries from motor accidents, including vehicle fires. The assessment process focuses on functional impairment and the impact on daily life. A person may be assessed as having a whole person impairment (WPI) if the burn injury results in lasting physical or psychological limitations. This assessment is conducted by an independent medical practitioner under the Motor Accident Injuries Regulation 2017 and the Motor Accident Guidelines. The Guidelines specify that burns are assessed based on their effect on mobility, self-care, and the ability to perform everyday tasks such as dressing, cooking, and managing household responsibilities. The presence of scarring, contractures, or nerve damage may contribute to a higher WPI score.
To establish entitlement to benefits, a claimant must provide evidence that supports the nature and extent of the injury and its impact on daily life. Key evidence includes medical records from emergency treatment through to rehabilitation, photographs of the burn site and scarring, and a functional capacity assessment from a treating medical practitioner. A detailed diary recording daily activities, pain levels, and limitations over time can also be valuable. Witnesses to the accident, including emergency responders or first aid providers, may provide statements about the immediate aftermath and the visible severity of the injury. It is essential to preserve all correspondence with insurers and to notify the CTP insurer within a reasonable time after the accident, although there is no strict legal deadline for notification under the current scheme.
Compensation for burn injuries that affect daily activities is determined by the level of functional impairment and the duration of the impact. If the injury results in a WPI of 10% or more, and the person meets the threshold for damages under the Motor Accident Injuries Act 2017, they may be eligible to claim damages for non-economic loss. This includes pain and suffering, loss of enjoyment of life, and loss of amenity. The amount awarded is not fixed and depends on the severity, permanence, and personal impact of the injury. For injuries that do not meet the threshold, benefits are limited to treatment and care, and weekly income payments for a maximum of 52 weeks if the injury is classified as a threshold injury. This 52-week limit applies only to injuries that are not more than threshold in nature, and not to injuries that result in a WPI of 10% or more.
A common challenge in burn injury claims is proving that the injury has caused a sustained or permanent impact on daily functioning. For example, a person who sustained second-degree burns to the hands and face in a vehicle fire may struggle with eating, writing, or facial expressions, even after healing. An assessment may show that these limitations persist beyond the initial recovery phase, supporting a claim for damages. In such cases, the claimant must demonstrate that the injury has caused a significant and ongoing disruption to their life, as required by the Act.
If a claim is denied or the offered settlement is considered inadequate, the claimant may request a review from the insurer or apply to the State Insurance Regulatory Authority (SIRA) for a determination. SIRA is the independent body responsible for administering the CTP scheme in NSW and ensuring that claims are assessed fairly under the law. Disputes may be resolved through mediation or, if necessary, by application to the NSW Civil and Administrative Tribunal (NCAT).
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