What Changed for Failure-to-Give-Way Accidents 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’s Compulsory Third Party (CTP) insurance scheme significantly altered how claims are assessed for failure-to-give-way accidents. Under the new Motor Accident Injuries Act 2017 (MAIA), claimants must now demonstrate a 'threshold injury', defined as a clinically significant injury requiring medical treatment, to qualify for statutory benefits. This replaced the previous system where claims were based on fault alone. For example, a driver who ignored a give-way sign but suffered only minor bruising may no longer qualify for benefits, whereas someone with a soft-tissue injury meeting SIRA’s guidelines would.
How SIRA Handles Failure-to-Give-Way Claims
The State Insurance Regulatory Authority (SIRA) now assesses claims under the updated MAIA framework. Key changes include:
- Threshold injury assessment: SIRA uses the Motor Accident Guidelines to determine if an injury meets the 'threshold' standard. This includes injuries like whiplash, soft-tissue damage, or spinal nerve-root injuries with neurological signs.
- Statutory benefits limits: If a claimant’s only injuries are threshold injuries, weekly benefits and treatment payments are generally limited to 52 weeks.
- No-fault claims: Claimants can still seek compensation for medical treatment, lost income, and other expenses regardless of fault, but must prove the injury meets the threshold.
Practical Steps for Claimants
To support a failure-to-give-way claim, gather:
- Medical records: Confirm the injury meets SIRA’s threshold definition.
- Accident details: Document the location (e.g., car park, intersection), time, and conditions.
- Witness statements: If available, these can help establish fault.
- Photographs: Show the scene, damage, and any give-way signs.
Notify your insurer promptly, as delays may affect benefit eligibility. SIRA also requires a 'reasonable opportunity' to claim benefits within 52 weeks of the accident.
Time Limits and Dispute Options
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 may weaken the claim. If SIRA disputes the injury’s severity, claimants can request a review or seek independent medical assessment.
When to Seek Legal Advice
Complex cases, such as those involving multiple injuries, long-term care needs, or disputes over fault, may require legal assistance. A solicitor can help navigate SIRA’s guidelines, ensure all evidence is submitted, and challenge incorrect benefit decisions.
The 2017 reforms shifted focus to injury severity rather than fault for failure-to-give-way claims. Claimants must now prove a threshold injury to access benefits, and time limits apply. For tailored advice, complete the quick, no obligation enquiry form.