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).
Chronic regional pain syndrome (CRPS) following a motor vehicle accident in New South Wales is recognised under the CTP scheme, but time limits apply that can affect whether compensation is available. The Motor Accident Injuries Act 2017 (MAIA) governs all CTP claims in NSW, including those involving CRPS. While CRPS is not a threshold injury, it may still qualify for damages if it results in a permanent impairment or significant long-term impact. The primary time limit for making a claim under the CTP scheme is three years from the date of the accident. This is a strict deadline under the MAIA, and failing to file a claim within this period generally means the right to compensation is lost.
The claim must be made through the insurer of the at-fault vehicle, or through the Nominal Defendant if fault is disputed or the insurer is not available. For claims involving CRPS, the process is not delayed by the condition’s complexity, but the claim must still be initiated within the three-year window. The SIRA (State Insurance Regulatory Authority) confirms that claims for injuries like CRPS are subject to the same time limits as other motor accident injuries, regardless of the medical complexity or duration of symptoms.
A claim for CRPS may involve a claim for damages, which includes compensation for pain and suffering, loss of enjoyment of life, and future care needs. To succeed, the claimant must establish that the CRPS arose from the motor accident and that it has caused a permanent impairment. A medical assessment by a qualified practitioner is required to determine whole person impairment (WPI), which is used to calculate damages. The Motor Accident Injuries Regulation 2017 and the Motor Accident Guidelines set out the criteria for assessing WPI and for determining whether an injury is permanent.
In Greater Sydney, as elsewhere in NSW, the time limit is not extended simply because the injury was not immediately apparent or because symptoms developed gradually. The three-year period starts from the date of the accident, not from when the diagnosis was made. This means that early reporting of the injury and prompt medical assessment are critical. Delay in seeking treatment may affect the ability to link the injury to the accident, particularly if there is a gap between the accident and the first medical evaluation.
Evidence that supports a CRPS claim includes medical records showing the diagnosis and treatment, imaging reports, pain diaries, and statements from treating practitioners. Witness statements about changes in behaviour or function after the accident may also be useful. Photographs of the accident scene, vehicle damage, and any relevant correspondence with insurers should be preserved. The claimant must keep a record of all communications with insurers, including emails and letters, as these may be needed to demonstrate that the claim was made within the time limit.
If a claim is made after the three-year period, it may still be possible to seek an extension under the MAIA, but only in limited circumstances. The court may grant an extension if it is satisfied that the claimant had a reasonable excuse for not making the claim on time. This is a high threshold and requires evidence of a serious impediment, such as a mental health condition that prevented the claimant from understanding or acting on the claim. The burden of proof lies with the claimant, and the court will consider the reason for the delay, the length of the delay, and whether it would be unjust to allow the claim.
A common mistake in CRPS claims is assuming that because the condition is long-term or progressive, the time limit does not apply. This is incorrect. The three-year limit applies regardless of the nature of the injury. Another mistake is waiting for a full recovery before making a claim. The law allows claims to be made at any stage after the accident, even if the full extent of the injury is not yet known. However, delaying a claim increases the risk that evidence may be lost or witnesses may not be available.
A hypothetical example: A pedestrian in Sydney was struck by a car in July 2024. They developed CRPS in their right leg in early 2025, which was confirmed by a specialist in April 2025. The claim was not made until November 2026. The claim would be time-barred unless a valid reason for the delay could be established. The claimant would need to demonstrate that they were unable to act on the claim due to a medical condition or other serious obstacle.
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