Death benefits for dependants after a fatal motor accident
If a loved one died in a motor vehicle accident in New South Wales, dependants may be eligible for financial support through the Compulsory Third Party (CTP) scheme. This article explains how dependants claim death benefits under NSW law, focusing on how daily activity capacity is assessed by the State Insurance Regulatory Authority (SIRA) on the Central Coast.
NSW CTP rules for dependant claims
Under the Motor Accident Injuries Act 2017, dependants of deceased road users may claim death benefits to cover lost income, living costs, and other expenses. These benefits are distinct from injury-based claims and are available regardless of fault. SIRA administers the CTP scheme, which provides:
- Lump sum death benefits for dependants
- Weekly income benefits for dependants who were reliant on the deceased's income
- Out-of-pocket expenses such as medical bills or funeral costs
Importantly, dependant claims are not limited to immediate family. SIRA defines dependants broadly to include children, parents, spouses, and others who relied on the deceased for financial support.
How daily activity capacity is assessed
Insurers assess whether a dependant can return to daily activities by evaluating their ability to work, manage household tasks, or maintain personal care. This assessment is guided by SIRA's Motor Accident Guidelines, which require:
- Medical evidence showing the deceased's ability to support the dependant
- Financial records demonstrating reliance on the deceased's income
- Evidence of daily activities such as employment, education, or household responsibilities
For example, if a deceased parent supported a child's education, the child may be eligible for income benefits even if they are not currently working. SIRA considers the deceased's capacity to support the dependant at the time of the accident, not their current circumstances.
Practical steps and evidence to gather
To claim death benefits, dependants must provide:
- Proof of the deceased's death (death certificate)
- Evidence of financial reliance (pay stubs, bank statements, or tax returns)
- Medical records showing the deceased's ability to support the dependant
- Witness statements or accident reports if available
It is crucial to submit all evidence promptly, as time limits apply. SIRA may also request independent medical assessments to verify capacity.
Time limits and dispute resolution
Dependants have five years from the date of the accident to claim death benefits under the CTP scheme. However, this period may be shorter if the deceased's estate has already settled the claim. If an insurer disputes a claim, dependants can:
- Request a review by SIRA
- Seek independent expert opinions
- Lodge a complaint with the NSW Ombudsman
Disputes often arise over the deceased's capacity to support the dependant. SIRA uses the Motor Accident Guidelines to determine whether the deceased could have provided the claimed level of support.
When to seek legal advice
Dependant claims can be complex, especially when assessing daily activity capacity. Legal professionals can help by:
- Navigating SIRA's assessment process
- Challenging unfair denials of benefits
- Ensuring all evidence is submitted correctly
If your claim is being disputed or you need guidance on meeting SIRA's requirements, contact a legal adviser with experience in NSW CTP claims.
Next steps
CTP death benefits depend on the deceased's capacity to support dependants and the evidence provided. If you are unsure whether your claim meets SIRA's requirements, complete the quick, no obligation enquiry form to request contact about your circumstances.