What Changed for Failure to Give Way Claims After 2017?
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).
The 2017 reforms to NSW Compulsory Third Party (CTP) laws significantly altered how claims are handled for failure to give way accidents. Prior to 2017, drivers could pursue common law damages for such incidents, but the reforms shifted the focus to statutory benefits under the Motor Accident Injuries Act 2017. This means claims now depend on whether the accident meets the 'threshold injury' criteria, which requires a minimum level of harm. For example, a driver who ignored a give-way sign but suffered only minor bruising may no longer qualify for compensation under the revised scheme.
How the 2017 Reforms Affect Liability and Compensation
Under the new rules, liability for failure to give way accidents is determined by whether the driver breached a traffic law, not whether they caused harm. This means the at-fault driver’s insurance (via their green slip) covers statutory benefits, but common law damages are no longer available unless the injury meets the threshold. For instance, a cyclist who swerved to avoid a car that failed to give way may now need medical evidence of a soft-tissue injury (like a sprained ankle) to claim benefits.
Evidence Required for a Failure to Give Way Claim
To support a claim, you must provide:
- Accident details: Police reports, traffic camera footage, or witness statements showing the failure to give way.
- Medical records: Proof of injury meeting the threshold, such as imaging or a doctor’s note.
- Income evidence: For weekly payments, show lost wages or reduced earning capacity.
- Insurer correspondence: Documentation showing you notified the at-fault driver’s insurer.
Time Limits and Dispute Options
Claims must be made within 52 weeks of the accident, unless the injury was not immediately apparent. If your claim is disputed, you can request a review by the NSW Civil and Administrative Tribunal (NCAT) or seek mediation through SIRA. For example, if your doctor later confirms a soft-tissue injury after an initial rejection, you may reapply for benefits.
A Hypothetical Example
Imagine a driver in Ashfield who ignored a give-way sign at a junction, causing a collision with a cyclist. The cyclist has a sprained wrist (a threshold injury) and medical bills. Under the 2017 reforms, the cyclist could claim weekly payments and treatment benefits from the at-fault driver’s insurer. However, if the injury was minor and the accident occurred more than 52 weeks ago, the claim may be denied.
When to Seek Legal Advice
The 2017 reforms introduced complex rules about injury thresholds and time limits. If your claim was rejected, or if you’re unsure whether your injury qualifies, contact a legal professional. General information cannot determine whether a claim is available in your case.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.