What changed for bus passengers after the 2017 CTP reforms?
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).
Since the Motor Accident Injuries Act 2017 came into effect, passengers injured in bus or coach accidents in New South Wales have faced a revised framework for compensation. The most significant change is the introduction of a threshold injury system that limits access to damages unless the injury meets a defined standard. This means that for a bus passenger to claim damages for pain and suffering, they must have a 'threshold injury', a serious injury that significantly impacts daily life. The reforms also clarify the entitlement to treatment and care benefits, weekly income payments, and the conditions under which these benefits may be limited after 52 weeks if only threshold injuries are sustained.
How the 2017 reforms affect bus accident claims
Under the current NSW CTP scheme, bus passengers are treated the same as other road users when it comes to entitlements. The Motor Accident Injuries Act 2017 establishes a uniform approach across all motor vehicle incidents, including those involving buses, coaches, and charter vehicles. The law does not distinguish between vehicle type when determining eligibility for statutory benefits. However, the nature of bus travel, often involving longer journeys, higher speeds, and greater risk of serious impact, can influence the type and severity of injuries sustained.
The reforms introduced a clear distinction between statutory benefits and common law damages. Statutory benefits, including treatment and care, weekly income payments, and a lump sum for non-economic loss, are available to all injured persons regardless of fault. However, damages for pain and suffering are only accessible if the injury meets the threshold test. This includes injuries such as a permanent impairment of at least 10% to a body part, or a permanent impairment of at least 5% due to a spinal nerve-root injury that causes neurological signs other than radiculopathy.
Practical steps for bus accident passengers
If you were injured as a passenger on a bus in NSW, the following steps are essential under the current framework:
- Seek medical attention immediately and keep all records, including diagnosis, treatment plans, and progress notes.
- Report the accident to the driver or operator as soon as possible, and obtain a written statement if available.
- Preserve any evidence, including photographs of the bus interior, seat damage, or the scene, and contact details of witnesses.
- Notify the CTP insurer of the claim within a reasonable time. While there is no fixed deadline for reporting, delays may affect the insurer’s ability to investigate.
- Maintain records of any loss of income, out-of-pocket expenses, and ongoing treatment costs.
These steps are critical because the CTP insurer must assess the injury against the Motor Accident Guidelines to determine eligibility for benefits and whether the threshold for damages has been met.
Time limits and dispute options
There is no fixed time limit to begin a CTP claim in NSW, but delays may affect the insurer’s ability to gather evidence or assess liability. For claims involving damages, the claim must be commenced within three years of the accident date, as per the Limitations Act 1969.
If the insurer denies a claim or disputes the injury severity, the passenger may request a review under the SIRA dispute resolution process. This includes a formal review by SIRA or, if unresolved, a referral to the NSW Civil and Administrative Tribunal (NCAT). Passengers may also seek independent medical assessment to support their claim.
What the SIRA guidance says about bus accident claims
SIRA’s official guidance confirms that bus passengers are entitled to the same statutory benefits as other road users. The agency provides a standard process for claims, including:
- A claim for treatment and care benefits, which cover reasonable and necessary medical treatment, rehabilitation, and care.
- A claim for weekly income payments if the injury prevents return to work.
- A claim for damages if the injury meets the threshold test.
SIRA does not distinguish between bus and car accidents in its policy interpretation. The focus remains on the nature of the injury, the medical evidence, and the impact on the claimant’s life. The Motor Accident Guidelines, which SIRA administers, define the clinical criteria for threshold injuries and must be met to access damages.
A realistic example
A 42-year-old passenger was injured in a bus crash on a highway in Sydney in June 2024. The bus collided with a truck, and the passenger sustained a spinal nerve-root injury with documented neurological signs, including loss of sensation in the left leg. Medical reports confirmed a permanent impairment of 12%. The claim was assessed under the Motor Accident Guidelines. Because the injury met the threshold for a spinal nerve-root injury with neurological signs, the passenger was eligible to claim damages for pain and suffering, in addition to treatment and care benefits and weekly income payments.
When to seek independent advice
The 2017 reforms have made the claims process more structured but also more complex. Determining whether an injury meets the threshold, understanding the 52-week limit on benefits if only threshold injuries are sustained, and navigating the dispute process all require careful attention to detail. The law does not assume fault in every claim, but the burden of proof lies with the claimant to demonstrate injury severity and impact.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.