Death benefits for dependants under NSW CTP laws
If a motor accident results in a fatality, dependants such as children, partners, or parents may be eligible for financial support under the NSW Compulsory Third Party (CTP) scheme. The Motor Accident Injuries Act 2017 outlines death benefits to help families cover essential living costs, funeral expenses, and other needs. This article explains what dependants can claim, how to make a claim, and what evidence is required.
How death benefits work for dependants
Under the CTP scheme, dependants of a deceased person may receive a lump sum death benefit. This is separate from benefits for injured claimants and is designed to support families who rely on the deceased’s income. To qualify, the dependant must demonstrate:
- A financial or practical reliance on the deceased person
- That the death has caused a significant change in their financial situation
The death benefit is calculated based on the deceased’s income and the dependant’s financial needs. For example, a child under 18 who relied on their parent’s income may receive support to cover living expenses.
Practical steps to claim death benefits
To claim death benefits, dependants must:
- Notify the at-fault driver’s insurer as soon as possible. The insurer is responsible for paying CTP benefits.
- Provide evidence of dependency such as school records, financial records, or witness statements.
- Submit a completed claim form through the State Insurance Regulatory Authority (SIRA) website.
Key evidence includes:
- A death certificate
- Proof of the deceased’s income
- Documents showing the dependant’s financial reliance (e.g., bank statements, school enrollment records)
Time limits and dispute resolution
Dependants must make a claim within the applicable time limits. While there is no fixed deadline for death benefits, delays can affect the process. If the insurer disputes the claim, dependants can request a review through SIRA or seek independent legal advice.
Example: A family seeking death benefits
Consider a scenario where a parent dies in a Bankstown motor accident. Their 16-year-old child, who relied on their income for school and living expenses, may claim death benefits to cover tuition and daily costs. The family would need to provide evidence of the child’s dependency and the parent’s income.
When to seek legal advice
While the CTP scheme provides a clear pathway for dependants, claims can be complex. Legal professionals can help assess eligibility, navigate time limits, and challenge disputes. Always act promptly to ensure all requirements are met.
Next steps
CTP death benefits depend on the accident date, the deceased’s circumstances, and the dependant’s financial needs. To request contact about your situation, complete the quick, no obligation enquiry form.