How Shared Fault Affects NSW CTP Compensation 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 were injured in a motor accident in Newcastle or Hunter and are partially at fault, you may still be eligible for compensation under the NSW Compulsory Third Party (CTP) scheme. However, your claim may be adjusted based on your level of responsibility. The scheme considers contributory negligence when determining the amount of benefits you can receive.
NSW CTP Rules on Contributory Negligence
Under the Motor Accident Injuries Act 2017, the CTP scheme allows for a reduction in compensation if the claimant contributed to the accident. For example, if you were jaywalking and were hit by a car, your compensation may be reduced to reflect your share of the fault. SIRA (State Insurance Regulatory Authority) assesses claims by considering:
- The degree of your fault compared to the other party
- Whether your actions directly contributed to the accident
- The impact on your injuries and recovery
This means contributory negligence does not automatically disqualify you from receiving benefits, but it may reduce the total amount.
Practical Steps for Claimants in Newcastle and Hunter
To assess your eligibility, take these steps:
- Gather medical evidence - Document your injuries with a medical professional. SIRA requires proof that your injuries meet the 'threshold injury' definition under the Motor Accident Guidelines.
- Collect accident details - Obtain police reports, witness statements, and photos of the scene. These help establish fault and injury severity.
- Review your claim timeline - Claims must be submitted within two years of the accident date (s 5.2 of the Motor Accident Injuries Act 2017). Delays may affect your ability to claim.
- Seek independent advice - A solicitor can help you understand how your fault level impacts your benefits and whether you qualify for additional support.
SIRA's Role in Contributory Negligence Claims
SIRA evaluates claims by applying the 'proportionate liability' principle. If you are 20% at fault, your compensation may be reduced by 20%. This applies to both statutory benefits (like weekly payments) and damages for pain and suffering. However, the CTP scheme does not cover all injuries - for example, minor soft-tissue injuries may not qualify if they don't meet the threshold.
Example: How Fault Affects Benefits
Imagine a cyclist in Newcastle who was hit by a car while riding against traffic. If the cyclist is 30% at fault for riding the wrong way, their weekly income payment may be reduced by 30%. SIRA would also consider whether the cyclist's injuries (like a sprained ankle) meet the threshold injury criteria.
When to Seek Legal Advice
If your claim involves shared fault, it's important to consult a solicitor early. They can:
- Help you understand how your fault level affects your benefits
- Ensure you meet all CTP scheme requirements
- Challenge unfair assessments of your fault or injury severity
Next Steps
CTP entitlements depend on the accident date, fault level, and injury type. To request contact about your circumstances, complete the quick, no obligation enquiry form.