Death benefits for dependants, what changed after 2017 reforms
Where a person's only injuries resulting from the accident are threshold injuries, weekly benefits and treatment and care generally cease after 52 weeks (ss 3.11 and 3.28).
The 2017 reforms to NSW Compulsory Third Party (CTP) insurance introduced significant changes to how death benefits are calculated for dependants. Under the new Motor Accident Injuries Act 2017 (MAIA), dependants of victims of fatal motor accidents now receive benefits based on a needs-based assessment rather than a fixed formula. This shift impacts claimants in the Illawarra and South Coast regions, where SIRA (State Insurance Regulatory Authority) processes claims under the revised scheme.
Key changes to death benefits under the 2017 reforms
Before 2017, death benefits were calculated using a standardised formula that considered factors like the deceased’s income and the dependant’s needs. The reforms replaced this with a more flexible approach, where benefits are determined based on the dependant’s actual financial needs, including living costs, education, and other dependents. This change aligns with SIRA’s updated guidelines, which now prioritise individual circumstances over a one-size-fits-all calculation.
For example, a dependant who relies on the deceased’s income for housing and education may now receive higher benefits than under the old system. However, the reforms also introduced stricter rules on what qualifies as a ‘dependant’ under the new scheme, requiring clearer evidence of financial reliance.
How Illawarra and South Coast claimants differ
While the legal framework applies uniformly across NSW, claimants in the Illawarra and South Coast regions may experience differences in processing times and local SIRA office practices. SIRA’s regional offices have specific procedures for handling dependant claims, including additional steps to verify dependency and assess needs. Claimants should contact their local SIRA office to understand any regional variations in claim processing.
Practical steps for dependant claims
To claim death benefits under the revised CTP scheme, dependants must:
- Notify SIRA within 52 weeks of the accident (or within 5 years if the claimant was a minor at the time of the accident)
- Provide evidence of dependency, such as financial records, proof of living arrangements, and documentation of the deceased’s income
- Submit a completed claim form through SIRA’s online portal or by mail
Medical evidence may also be required to establish the deceased’s ability to support dependants. SIRA’s guidelines now explicitly state that dependants must demonstrate a direct financial reliance on the deceased’s income.
Time limits and dispute resolution
Dependants have 52 weeks from the accident date to claim benefits under the MAIA. If the deceased’s death occurred after 1 December 2017, the 52-week period applies. Claims for dependants who were minors at the time of the accident have a 5-year time limit.
Disputes over benefit amounts can be resolved through SIRA’s internal review process or by applying to the NSW Civil and Administrative Tribunal (NCAT). Claimants should seek legal advice if they believe their claim has been undervalued under the new scheme.
When to seek legal advice
The 2017 reforms introduced complex changes to how dependant claims are assessed. For example, the new scheme requires claimants to prove dependency through financial evidence, which can be challenging. Legal professionals can help claimants navigate SIRA’s guidelines, challenge incorrect assessments, and ensure they receive the full benefits they are entitled to under the MAIA.
Next steps for dependants
If you or a family member has been affected by a fatal motor accident in the Illawarra or South Coast regions, it is essential to act quickly. Contact your local SIRA office to start the claims process and consider seeking legal advice to ensure your claim is handled correctly under the revised CTP scheme.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.