Proving Economic Loss in a NSW Motor Accident Claim
If you were injured in a motor accident in Greater Sydney and are claiming compensation for lost income or reduced earning capacity, you must provide objective evidence of your financial loss. Under the Motor Accident Injuries Act 2017 (MAIA), economic loss includes wages lost during recovery and future loss of earnings if your injury affects your capacity to work. This evidence must be clear, contemporaneous and verifiable to support your claim under the Compulsory Third Party (CTP) insurance scheme.
Essential Evidence for Income Loss Claims
To establish economic loss, you must collect and preserve the following documentation:
- Pay slips or payslips for at least 12 months before and after the accident, showing your regular income and any reductions.
- A written statement from your employer detailing your job role, hours worked, and any changes to your duties, pay or work capacity since the accident.
- A medical certificate or letter from your treating medical practitioner confirming your fitness to work, any work restrictions, and the impact of your injury on your ability to perform your job.
- Records of any out-of-pocket expenses directly related to the accident, such as travel costs to medical appointments, home care services, or equipment purchased to support recovery.
- A formal assessment of your whole person impairment (WPI) if you are claiming damages for future economic loss, as this may affect your earning capacity.
SIRA confirms that claims for economic loss must be supported by objective records, not general statements about financial hardship.
How CTP Law Defines and Limits Economic Loss Claims
Under the MAIA, you may claim for economic loss only if your injury results in a permanent impairment of at least 10%. This threshold applies to claims for damages, including future loss of earnings. If your injury does not meet this threshold, you may only be entitled to treatment and care benefits and weekly income payments for up to 52 weeks, as provided under section 4.4 of the MAIA.
Where your only injuries are threshold injuries, weekly benefits and treatment and care benefits generally cease after 52 weeks. This applies even if you have not fully recovered, because the law limits these benefits to injuries that are not permanent or severe enough to qualify for damages.
A threshold injury under the MAIA includes soft tissue injuries, such as whiplash, but only if they result in a permanent impairment. The term "soft tissue" is part of the statutory definition under section 1.6 of the MAIA. For example, a spinal nerve-root injury that causes neurological signs other than radiculopathy may still be considered a soft tissue injury under the Motor Accident Guidelines.
Practical Steps to Strengthen Your Claim
To ensure your claim is not weakened by missing or inconsistent evidence, take these steps immediately:
- Notify your insurer within 28 days of the accident, as required under the Motor Accident Injuries Regulation 2017.
- Keep a daily record of your symptoms, absences from work, and any changes to your work capacity.
- Do not delay providing medical evidence or income records to your insurer.
- Avoid giving inconsistent accounts of your injury and its impact to your insurer, medical practitioners, or employer.
If you are claiming for future economic loss, a WPI assessment by a qualified medical assessor is essential. This assessment must be conducted by a medical practitioner approved under the MAIA.
When to Seek Help
The process of gathering and presenting evidence for an economic loss claim can be complex. If you are unsure whether your documentation meets the required standard, or if your injury has affected your ability to work, it is advisable to seek independent advice. A solicitor experienced in CTP claims can help you understand what evidence is needed, how to present it, and whether you may be entitled to claim for future economic loss.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.