Funeral Expenses in NSW CTP Claims

Funeral Expenses in NSW CTP Claims

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).

If you've suffered a motor accident resulting in a death, you may be entitled to claim funeral expenses under New South Wales' Compulsory Third Party (CTP) scheme. This article explains what funeral costs are covered, how insurers assess claims, and steps to take if your request is denied.

What Funeral Expenses Are Covered Under NSW CTP?

Under the Motor Accident Injuries Act 2017, funeral expenses are defined as costs incurred to transport the deceased to a burial or cremation location, and to arrange the burial or cremation. This includes:

• Transportation of the deceased to the burial or cremation site
• Costs of burial or cremation services
• Fees for funeral directors or related services
• Expenses for the deceased's clothing or personal effects

Insurers must consider the claimant's circumstances, including the deceased's location and the cost of services, when assessing coverage. SIRA's guidelines clarify that expenses must be reasonable and directly related to the funeral.

How Do Insurers Evaluate Funeral Expense Claims?

Insurers assess funeral expense claims by examining:

1. Documentation: Receipts, invoices, and written records of all funeral-related costs.
2. Necessity: Whether the expense was essential to the burial or cremation process.
3. Reasonableness: Whether the cost aligns with standard industry rates for the service.
4. Timing: Whether the expense was incurred within the claim period.

For example, if a family arranges a private funeral director to transport the deceased to a remote burial site, the cost may be covered if it's reasonable and documented. However, luxury items like a custom coffin may not be covered unless explicitly stated in the claim.

Practical Steps for Claimants

To support your claim, gather:

• A copy of the death certificate
• Funeral service invoices and receipts
• Transportation records (e.g., taxi or ambulance bills)
• Proof of the deceased's location at the time of death

Communicate with the insurer in writing, referencing the specific expenses and their relevance to the funeral. If your claim is denied, request a written explanation and consider lodging a formal dispute.

Time Limits and Dispute Options

CTP claims must typically be submitted within 52 weeks of the accident, though this may vary depending on the circumstances. If your claim is denied, you can:

1. Request a review with the insurer, citing the reasons for your objection.
2. Contact SIRA (State Insurance Regulatory Authority) for mediation.
3. Seek legal advice if the insurer's decision appears unreasonable.

When to Seek Legal Advice

Consult a legal professional if:

• The insurer refuses to cover a clearly documented expense.
• You're unsure whether your claim meets the CTP scheme's criteria.
• You need assistance navigating the dispute process.

Next Steps

CTP entitlements depend on the accident date, injury type, and claim history. To discuss your circumstances, complete the quick, no obligation enquiry form.