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).
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).
If a loved one died in a motor accident in NSW, their dependants may be eligible for financial support through the Compulsory Third Party (CTP) scheme. The New South Wales Motor Accident Injuries Act 2017 and SIRA guidelines outline how dependants can claim benefits for lost income, living expenses, and funeral costs. However, many people make errors that delay or prevent their claim. This article explains key requirements, common mistakes to avoid, and how to navigate the process in Ashfield.
Key requirements for claiming death benefits
To qualify for death benefits under the CTP scheme, dependants must prove:
- The deceased was killed in a motor accident covered by the CTP scheme
- The dependant's financial reliance on the deceased
- The dependant's relationship to the deceased (e.g. spouse, child, parent)
- The deceased's income and earning capacity
SIRA assesses claims based on the Motor Accident Guidelines, which define what constitutes a 'dependant' under NSW law. This includes children under 18, elderly parents, and partners who relied on the deceased's income. Claims must be submitted within 52 weeks of the accident, although exceptions exist for dependants who were not immediately aware of their entitlement.
Common mistakes to avoid
1. Failing to document financial reliance
Many dependants overlook the need to prove how they relied on the deceased's income. SIRA requires evidence such as:
- Bank statements showing joint accounts
- Tax returns showing the deceased's income
- Proof of living arrangements (e.g. mortgage, rental agreements)
- Evidence of daily care or support provided by the deceased
Without this documentation, claims may be denied or delayed. For example, a family might not realize they need to provide proof of their child's reliance on the deceased's income for university fees.
2. Missing deadlines
The 52-week time limit for submitting claims applies to most dependant claims. However, this period can be extended if the dependant:
- Did not know they were eligible
- Was unable to act due to illness or injury
- Was living overseas
It is crucial to contact SIRA within this timeframe. A family in Ashfield who missed the deadline for a child's claim due to a miscommunication with their solicitor faced a 12-month delay in securing benefits.
3. Not seeking early legal advice
Complex claims involving multiple dependants, blended families, or disputes over dependency can benefit from early legal input. SIRA's guidelines are technical, and errors in calculating benefits (such as miscalculating the deceased's earning capacity) can significantly impact the outcome.
How SIRA assesses dependant claims
SIRA evaluates each claim based on the deceased's potential earnings and the dependant's financial needs. For example, a spouse who was not working may still qualify if they relied on the deceased's income for housing and living expenses. The assessment considers:
- The deceased's age, health, and career prospects
- The dependant's financial situation before and after the accident
- The duration of the dependency
A key distinction is between 'dependent' and 'dependent child' claims. SIRA has specific rules for children under 18, including the requirement to demonstrate that the child's financial reliance on the deceased was 'substantial' and 'continuous'.
Time limits, disputes and next steps
Dependants have 52 weeks from the accident date to submit a claim. If the claim is denied, they can request a review through SIRA's internal process. In some cases, legal action may be necessary to challenge a decision.
When to seek professional help
Navigating the CTP scheme requires understanding technical requirements like the 'threshold injury' definition and the distinction between statutory benefits and common law damages. A solicitor can help identify all eligible dependants, ensure all documentation is complete, and challenge incorrect decisions. In Ashfield, many claimants benefit from early legal advice to avoid costly mistakes.
Next steps
If you or a loved one has suffered a loss due to a motor accident in NSW, it is essential to act promptly. Missing key deadlines or failing to provide necessary evidence can prevent you from receiving the support you are entitled to. For personalized advice, complete the quick, no obligation enquiry form to request contact about your circumstances.