Death benefits for dependants under NSW CTP scheme
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).
If a family member dies in a motor accident, dependants may be eligible for financial support through the NSW Compulsory Third Party (CTP) scheme. The scheme provides death benefits to cover loss of income, care needs, and other expenses. Caregivers and families must understand how dependants are defined, how benefits are calculated, and what evidence is needed to claim.
Who qualifies as a dependant?
Under the NSW CTP scheme, a dependant is someone who relied on the deceased for financial support or care. This includes:
- Children under 18
- Children aged 18-25 still in education
- Parents or other relatives over 60 who depend on the deceased for support
- Partners or spouses who were financially reliant on the deceased
The deceased must have been the primary financial provider for the dependant. For example, a parent who supported a child through university would qualify, even if the child is over 18.
How are death benefits calculated?
Benefits depend on the number of dependants and their needs. The scheme covers:
- Loss of income: Based on the deceased’s earnings and the dependant’s financial reliance
- Care and support costs: For dependants requiring ongoing assistance
- Other expenses: Such as funeral costs or relocation for dependants
A hypothetical example: If a 45-year-old parent dies, their 16-year-old child and 65-year-old mother may both qualify. The child’s benefit would cover lost income and education costs, while the mother’s benefit would account for lost pension and care needs.
Caregiver considerations
Caregivers must provide evidence of the deceased’s financial support and the dependant’s reliance on that support. Key documentation includes:
- Proof of the deceased’s income (e.g., payslips, tax returns)
- Evidence of the dependant’s financial dependence (e.g., bank statements, school records)
- Medical records showing the deceased’s role in providing care
Caregivers should also note that benefits are limited to 52 weeks for dependants with only threshold injuries. However, this rule does not apply to death claims, as the deceased is no longer alive to recover.
Time limits and disputes
Claims must be made within 52 weeks of the accident, unless an extension is granted. Families should act quickly to:
- Preserve evidence of financial reliance
- Notify the at-fault driver’s insurer
- Seek legal advice if disputes arise
Disputes may occur if the insurer disputes the dependant’s eligibility or the amount of benefits. Families should request a review in writing and consider seeking independent legal advice if claims are denied.
Next steps for families
Families should gather all relevant evidence, including financial records and proof of the deceased’s support. If the claim is denied or the amount is disputed, it may be necessary to consult a solicitor specialising in CTP claims. Time limits are strict, so acting promptly is essential.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.