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 you've been injured in a motor accident in Albury and are seeking compensation for lost income or future earnings, understanding your rights under NSW's Compulsory Third Party (CTP) scheme is essential. Economic loss claims cover financial impacts like reduced wages, loss of earning capacity, and out-of-pocket expenses. This article explains the practical steps to take immediately after an accident, how to document your losses, and the legal boundaries of such claims under the Motor Accident Injuries Act 2017. It also outlines time limits and when to seek legal advice.
What Economic Loss Claims Cover
Economic loss claims under NSW CTP laws include:
- Lost income from time missed at work
- Reduced future earning capacity due to injury
- Out-of-pocket expenses like medical bills or travel costs
- Loss of benefits such as superannuation or pension payments
SIRA (State Insurance Regulatory Authority) provides guidance on what can be claimed. For example, if a cyclist sustains a soft-tissue injury requiring time off work, they may claim lost wages and future income reductions if their earning capacity is permanently affected. However, claims must be supported by medical evidence and financial records.
Early Steps After a Motor Accident
After an accident, take these actions to preserve your claim:
- Seek immediate medical attention to document injuries, even if symptoms appear later. A doctor's report is critical for proving economic loss.
- Preserve evidence of your injuries and financial impact. This includes:
- Accident reports from police or witnesses
- Photographs of the scene and vehicle damage
- Records of lost wages, sick leave, or reduced hours
- Medical records showing treatment and recovery timelines
- Notify the at-fault driver's insurer as required under the CTP scheme. Most insurers have a claims process outlined on their websites.
- Contact SIRA for guidance on claiming economic losses. Their website provides templates for documenting income loss and future earning capacity.
Time Limits and Dispute Resolution
You must notify the insurer of your claim within 52 weeks of the accident. If you fail to do so, you may lose entitlement to weekly benefits for injuries that fall below the 'threshold injury' definition under the Motor Accident Guidelines. For example, if a pedestrian sustains a minor soft-tissue injury but requires time off work, they may still claim lost income if medical evidence supports it.
Disputes over economic loss claims are resolved by the NSW Civil and Administrative Tribunal (NCAT). If your claim is rejected, you can request a review or appeal. It's important to act quickly, as delays can weaken your case.
When to Seek Legal Advice
While SIRA provides resources for self-claiming, complex cases may require a solicitor. A lawyer can:
- Help assess whether your injuries meet the 'threshold injury' criteria
- Negotiate with insurers over disputed claims
- Challenge decisions to cut off benefits after 52 weeks
- Ensure you receive compensation for future earning capacity reductions
If your accident occurred before 1 January 2020, the rules may differ. Always confirm the applicable scheme for your accident date.
Example: Documenting Economic Loss
Consider a motorcyclist who suffered a back injury requiring surgery. Their medical records show they missed 12 weeks of work and were advised against heavy lifting. They can claim:
- Lost wages for the 12 weeks
- Reduced future earning capacity if they can no longer perform their job
- Medical expenses for treatment
This example shows how to connect injuries to financial impacts. Always keep detailed records of all income and expenses.
Next Steps
Economic loss claims depend on accurate documentation and timely action. If you're unsure whether your claim qualifies, contact a legal professional. Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.