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).
Withdrawing a Compulsory Third Party (CTP) claim in New South Wales may have legal and financial consequences. This guide explains the implications of withdrawing a claim, the evidence you must retain, and how SIRA guidelines apply. Understanding these rules helps injured persons make informed decisions about their motor accident compensation.
Legal consequences of withdrawing a CTP claim
Under the Motor Accident Injuries Act 2017 (MAIA), withdrawing a CTP claim may affect your ability to later claim benefits or damages. If you withdraw your claim, you may lose the right to:
- Claim weekly income payments or treatment benefits for threshold injuries
- Pursue a common law damages claim for non-threshold injuries
- Reopen the claim if your injury worsens or new evidence emerges
The MAIA requires claimants to notify SIRA of any withdrawal in writing. If you later seek to restart your claim, the insurer may dispute the validity of your original claim, especially if your injury falls within the soft-tissue threshold.
Evidence and records to retain
When withdrawing a CTP claim, you must retain all evidence that could support your claim in the future. Key records include:
- Medical records: All injury assessments, treatment plans, and specialist reports
- Accident details: Police reports, witness statements, and photographic evidence
- Income documentation: Pay slips, tax returns, and evidence of lost earnings
- Correspondence: All emails or letters with your insurer or SIRA
SIRA guidelines emphasize that insurers must retain claim records for 10 years. If you withdraw your claim, you should keep copies of all documents to protect your future rights.
SIRA guidelines on claim withdrawal
SIRA's Motor Accident Claims page confirms that claimants must notify the insurer in writing of any withdrawal. While there is no automatic penalty for withdrawing a claim, you may:
- Lose access to statutory benefits like weekly payments
- Face difficulties proving your injury's severity later
- Risk being deemed to have 'waived' your claim if you later seek to reopen it
SIRA also advises that claimants should not destroy any evidence, as this could lead to disputes about the claim's validity. If your injury worsens after withdrawal, you may need to restart the claim process, which could involve additional assessments.
Practical steps for claimants
If you're considering withdrawing your CTP claim, take these steps:
- Write to your insurer formally notifying them of your withdrawal
- Keep all original documents and copies for your records
- Consult a legal professional if your injury may qualify as a threshold injury
- Avoid destroying any evidence, even if your claim is paused
Remember, the MAIA requires claimants to notify SIRA of any withdrawal. Failing to do so could result in your claim being treated as abandoned.
When to seek legal advice
If your injury involves spinal nerve-root damage or radiculopathy, consult a legal professional before withdrawing your claim. These injuries may qualify as threshold injuries under the MAIA, which could affect your future entitlements. A solicitor can also help you understand the implications of withdrawing your claim in your specific circumstances.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.