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).
Economic loss claims under NSW Compulsory Third Party (CTP) motor accident compensation cover lost income, future earnings, and out-of-pocket expenses. This guide explains how SIRA assesses claims in Auburn and outlines practical steps to support your case.
What Types of Economic Loss Are Recoverable?
Under the NSW CTP scheme, economic loss includes:
- Lost wages from time off work due to injury
- Reduction in future earning capacity
- Out-of-pocket expenses like medical bills or home modifications
- Lost business income for self-employed individuals
SIRA evaluates claims based on medical evidence and financial records. For example, a self-employed builder injured in a car crash may claim lost income from missed work and reduced future earnings due to long-term mobility issues.
How SIRA Assesses Economic Loss Claims
SIRA uses the Motor Accident Guidelines to determine claim value. Key factors include:
- Medical reports confirming injury severity
- Tax records or payslips showing lost income
- Expert evidence on future earning capacity
- Documentation of out-of-pocket costs
In Auburn, claims involving future earnings require a medical professional to assess long-term impairment. For instance, a teacher injured in a car accident may need a specialist to estimate reduced career opportunities.
Practical Steps and Evidence Needed
To support your claim:
- Obtain medical records detailing injury impact
- Keep wage slips and employment records
- Document out-of-pocket expenses with receipts
- Gather accident reports and witness statements
- Provide evidence of pre-accident income
Auburn residents should also note that SIRA may request a medical assessment to evaluate future earning capacity. For example, a nurse injured in a car crash might need a vocational assessment to estimate reduced earning potential.
Time Limits and Dispute Resolution
You have 52 weeks from the accident date to claim economic losses under the CTP scheme. After this period, weekly benefits typically stop unless you have a threshold injury. If your claim is disputed, you can:
- Request a review from SIRA
- Seek independent medical opinions
- Consult a legal professional for dispute resolution
When to Seek Advice
Economic loss claims can be complex, especially when involving future earnings. In Auburn, it's advisable to seek legal advice if:
- Your injury affects long-term employment
- You have significant out-of-pocket expenses
- The claim involves multiple injuries
- You're unsure about claim value
Real-World Example
A 35-year-old Uber driver in Auburn was severely injured in a collision. He missed 12 weeks of work and faced long-term mobility issues. His claim included:
- Lost income from 12 weeks of unpaid leave
- Reduced future earning capacity due to mobility limitations
- Medical expenses for physiotherapy
SIRA assessed his claim based on medical reports showing a 20% reduction in earning capacity. The claimant received compensation for lost income and future earnings, with a focus on documented evidence.
Next Steps
Economic loss claims depend on accurate documentation and understanding of SIRA's assessment criteria. If your circumstances are complex, seek professional advice to ensure all claimable losses are considered. Complete the quick, no obligation enquiry form to request contact about your specific situation.