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).
Economic loss claims under NSW Compulsory Third Party (CTP) insurance cover lost income, future earnings, and out-of-pocket expenses after a motor accident. However, claimants in Western Sydney often make errors that reduce their compensation. This article explains what economic loss includes, how to prove it, and common mistakes to avoid when claiming under the Motor Accident Injuries Act 2017 (MAIA). Understanding SIRA’s assessment criteria and gathering proper evidence is essential to securing fair compensation.
What Types of Economic Loss Are Recoverable?
Under NSW CTP rules, economic loss includes:
- Lost income from time missed at work
- Reduced earning capacity due to permanent injuries
- Out-of-pocket expenses like medical bills or vehicle repairs
- Costs of home modifications or assistive devices
SIRA assesses these claims based on medical evidence, income records, and expert reports. For example, a claimant who missed three months of work due to a soft-tissue injury could recover lost wages if they can prove their salary and employment history.
Common Mistakes to Avoid
- Inadequate Documentation: Failing to keep records of income, expenses, or medical treatment can weaken a claim. For instance, not documenting a 10% pay cut due to reduced work capacity may mean losing compensation for diminished earning capacity.
- Ignoring Future Losses: Claimants must account for long-term financial impacts, such as a career-ending injury. A common error is underestimating future earnings based on current income alone.
- Not Seeking Medical Advice: Delaying medical treatment or not following up on injuries can lead to disputes over whether the injury is work-related or due to pre-existing conditions.
- Overlooking Secondary Losses: Expenses like travel for medical appointments or lost childcare costs are often overlooked but can be recoverable under CTP.
How SIRA Assesses Economic Loss
SIRA evaluates claims using the Motor Accident Guidelines and medical reports. For example, a claimant with a 20% whole person impairment rating may receive compensation for lost income and future earnings based on their profession and age. SIRA also considers whether the injury meets the 'threshold injury' definition under the MAIA, which includes soft-tissue injuries with neurological signs.
Evidence to Support Your Claim
To strengthen an economic loss claim, gather:
- Pay slips, tax returns, and employment records
- Medical reports detailing injury impact on work capacity
- Expert witness statements from vocational rehabilitation specialists
- Receipts for out-of-pocket expenses
- Aged care or home modification cost estimates
Time Limits and When to Seek Advice
CTP claims must be submitted within 52 weeks of the accident if only threshold injuries are involved. For non-threshold injuries, there is no strict time limit, but delays can complicate proving future losses. Seeking legal advice early ensures all evidence is collected and deadlines are met.
Final Steps
Economic loss claims require careful attention to documentation, future impacts, and SIRA’s assessment criteria. Avoid common pitfalls like underestimating long-term financial effects or failing to preserve evidence. For tailored guidance on your specific circumstances, complete the quick, no obligation enquiry form to request contact about your claim.