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).
The 2017 reforms to NSW Compulsory Third Party (CTP) insurance changed how funeral expenses are handled in motor accident claims. Previously, funeral costs were limited to a fixed schedule. Now, claimants may seek compensation for actual funeral expenses directly linked to the accident. This article explains the changes, how SIRA assesses claims, and steps to include funeral costs in your CTP claim.
What Changed in 2017?
Before 2017, funeral expenses were capped under Schedule 1 of the Motor Accident Injuries Act 2017. Claimants could only claim up to the listed amount, regardless of actual costs. The 2017 reforms removed this cap, allowing claimants to seek compensation for funeral expenses that are directly connected to the accident. This change aligns with SIRA’s updated guidelines, which now focus on the actual cost of funeral services rather than a fixed rate.
How SIRA Assesses Funeral Expenses
SIRA evaluates funeral expenses based on the following criteria:
- Direct connection to the accident: Expenses must be incurred as a result of the motor accident. For example, costs for a funeral director, burial or cremation, and transportation of the deceased.
- Receipts and documentation: Claimants must provide evidence such as invoices, receipts, or funeral home records. SIRA may request proof of the expense’s direct link to the accident.
- Reasonable and necessary costs: SIRA considers whether the expense was reasonable and necessary. For instance, a claim for a premium funeral service may be denied if the cost was not essential.
Practical Steps for Claimants
To include funeral expenses in your CTP claim, take these steps:
- Collect documentation: Gather all receipts, invoices, and records related to the funeral. This includes costs for the funeral director, transportation, and any other services.
- Notify the insurer: Inform the at-fault driver’s CTP insurer about the funeral expenses as part of your claim. SIRA requires this to be included in the claim form.
- Seek clarification: If unsure whether an expense qualifies, contact SIRA or a legal advisor. They can confirm whether the cost falls within the new assessment criteria.
Time Limits and Dispute Options
CTP claims must be submitted within 52 weeks of the accident, unless an extension is granted. If the insurer disputes funeral expenses, claimants can request a review through SIRA. In some cases, a formal dispute may require mediation or a tribunal hearing. It is important to act promptly to ensure all evidence is submitted before deadlines.
When to Seek Advice
If you are unsure whether your funeral expenses qualify, or if the insurer is refusing to cover certain costs, seek legal advice. A solicitor can help you understand your options and ensure your claim meets SIRA’s requirements.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.