Understanding Burn Injuries in NSW CTP Claims
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).
If you sustained burn injuries in a motor vehicle fire in New South Wales, you may be entitled to compensation under the Compulsory Third Party (CTP) insurance scheme. This scheme covers injuries caused by motor vehicle accidents, including those resulting from fires, explosions or thermal incidents during or after a collision. The Motor Accident Injuries Act 2017 (MAIA) governs all CTP claims in NSW, including those involving burns from vehicle fires. Whether you were a driver, passenger, pedestrian or cyclist, your eligibility depends on the nature of the injury, the circumstances of the accident, and the timing of your claim.
How Burn Injuries Are Assessed Under NSW Law
Under the MAIA, burn injuries are assessed based on their severity, duration, and impact on your daily life. The assessment considers both physical and psychological effects, including scarring, nerve damage, and long-term pain. The Motor Accident Injuries Regulation 2017 and the Motor Accident Guidelines set out how injuries are measured, including the use of whole person impairment (WPI) ratings. For burns, medical evidence must show the extent of tissue damage, depth of injury (first, second, or third degree), and any functional impairment.
A key factor in assessing burn claims is whether the injury qualifies as a threshold injury. Under the MAIA, a threshold injury includes soft-tissue injuries that cause persistent symptoms, or injuries that result in a WPI of 10% or more. If your burn injury results in a WPI of 10% or more, you may be eligible to claim damages for non-economic loss (such as pain and suffering) and future care needs. However, if your only injuries are threshold injuries, your entitlement to weekly payments and treatment benefits may be limited after 52 weeks, as the law provides.
Practical Steps and Evidence That Matter
To support a CTP claim for burn injuries from a vehicle fire, you must gather and preserve specific evidence. This includes:
- Medical records from emergency treatment, burns unit admissions, and follow-up care, including documentation of skin grafts, physiotherapy, or mental health treatment.
- Photographs of burn injuries taken soon after the incident, showing the extent and location of damage.
- Accident reports from police, fire services, or emergency responders, particularly those noting the cause of the fire (e.g., fuel leak, electrical fault, or collision impact).
- Witness statements from people who saw the fire or were present during the incident.
- Records of lost income, including payslips, employer letters, or tax returns, if you were unable to work.
- Details of out-of-pocket expenses, such as specialist clothing, travel to medical appointments, or home modifications.
You must notify your insurer as soon as possible after the accident. While fault does not prevent you from receiving treatment and care benefits under CTP, it may affect your ability to claim damages. If you were not at fault, you may be able to claim damages for pain and suffering, loss of enjoyment of life, and future care needs.
Real-World Example: A Vehicle Fire in Sydney
In 2023, a 34-year-old woman was a front-seat passenger in a car that collided with a tree in the Sydney suburb of Marrickville. The impact caused a fuel leak, which ignited and led to a fire. She sustained second-degree burns to her arms and torso. She was treated in a burns unit for 18 days and required three skin grafts. Her WPI was assessed at 14% due to scarring and chronic pain.
She made a claim under the CTP scheme. Her medical records, including imaging and specialist reports, confirmed the injury was not pre-existing. She submitted photos of her injuries, a police report noting the fire origin, and evidence of lost income. Because her injury exceeded the 10% WPI threshold, she was eligible to claim damages for non-economic loss, as well as future treatment and care needs. The claim was settled through negotiations with the insurer.
Time Limits and Dispute Options
There is a 3-year time limit from the date of the accident to begin legal proceedings for a CTP claim in NSW. This applies regardless of when symptoms first appeared or when a diagnosis was confirmed. If you are still receiving treatment or have ongoing pain, you may still be able to claim, but you must act within this timeframe.
If your claim is denied or you disagree with the insurer’s assessment of your injury or compensation amount, you may request a review from the insurer or apply to the NSW Civil and Administrative Tribunal (NCAT) for a determination. You may also seek an independent medical assessment if you believe your WPI rating is inaccurate.
When to Seek Independent Advice
Every claim depends on its own facts. The available options may depend on the facts, evidence and applicable law. To request contact about your circumstances, complete the quick, no obligation enquiry form.