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 withdraw a Compulsory Third Party (CTP) claim in New South Wales, there are legal and practical consequences to consider. Under NSW law, time limits and procedural rules may affect your ability to restart or refile a claim. This article explains how claim withdrawal impacts injured road users in the Newcastle and Hunter regions, based on the Motor Accident Injuries Act 2017 and SIRA guidelines.
What Happens If a CTP Claim Is Withdrawn?
Withdrawing a CTP claim means you formally stop pursuing benefits or damages under the scheme. While this is allowed, it may have long-term effects. For example, if you withdraw your claim before the 52-week statutory period for weekly benefits, you may lose access to those payments. SIRA’s guidelines state that weekly benefits are generally limited after 52 weeks if your injuries are classified as 'threshold injuries' under the Motor Accident Guidelines.
If you withdraw your claim entirely, you may need to start the process again if your circumstances change. However, this depends on whether your injury meets the threshold injury criteria and whether the accident date falls within the current scheme’s coverage. For instance, claims arising from accidents before 1 January 2020 may apply different rules under the old scheme.
Time Limits for Withdrawing a CTP Claim
NSW law imposes strict time limits for CTP claims. Under the Motor Accident Injuries Act 2017, you must notify SIRA of your claim within 52 weeks of the accident date. If you withdraw your claim after this period, you may no longer be eligible for weekly benefits or treatment and care payments. However, you could still pursue a common law damages claim if your injury meets the 'whole person impairment' threshold.
For example, if you withdraw your claim after 52 weeks but your injury involves a spinal nerve-root injury with neurological signs (as defined in the Motor Accident Guidelines), you may still qualify for benefits. This distinction is critical because 'threshold injuries' are limited after 52 weeks, but more severe injuries may not be.
How SIRA’s Guidance Applies to Claim Withdrawal
SIRA’s Motor Accident Claims page clarifies that claimants must inform the insurer of any changes to their circumstances, including withdrawal. If you withdraw your claim, you must also consider whether you can reapply if your injury worsens or new evidence emerges. However, there is no automatic right to restart a claim after withdrawal, each case is assessed on its merits.
A hypothetical example: Sarah, a Newcastle resident, withdraws her CTP claim after 50 weeks because she feels the benefits are insufficient. Six months later, her injury worsens, and she refiles. SIRA may refuse to restart the claim because the 52-week period has passed, even if her injury now meets the 'whole person impairment' threshold. This highlights the importance of understanding time limits before withdrawing.
Practical Steps and Evidence to Gather
If you are considering withdrawing your claim, document your reasons and ensure you have a clear record of your decision. Key evidence includes:
- Medical records confirming your injury status
- A copy of your withdrawal notice
- Any correspondence with SIRA or your insurer
- Evidence of changed circumstances (if you plan to reapply)
When to Seek Legal Advice
If your claim withdrawal could affect long-term benefits or if you are unsure about your options, consult a legal professional. SIRA’s guidelines do not cover all scenarios, and individual circumstances may require tailored advice.
Next Steps
CTP claim withdrawal rules depend on the accident date, injury type, and whether you meet the threshold injury criteria. To discuss your specific situation, complete the quick, no obligation enquiry form. Every claim depends on its own facts.