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).
In New South Wales, funeral expenses are a claimable cost under the Compulsory Third Party (CTP) scheme following a motor accident. Insurers assess these claims based on the Motor Accident Injuries Act 2017 (MAIA) and SIRA guidelines. This article explains how insurers evaluate funeral cost claims, the evidence required, and practical steps for claimants.
How Insurers Assess Funeral Expenses
Under the MAIA, funeral expenses are considered a 'consequence' of a motor accident. Insurers evaluate claims by determining whether the expenses are directly related to the accident and meet the 'reasonableness' test. SIRA guidelines state that claimants must provide evidence such as receipts, invoices, or funeral home records to support the cost. Expenses not directly tied to the accident, like pre-existing funeral arrangements, may be denied.
Factors Considered in Liability Assessments
Insurers assess liability by examining:
- Necessity: Whether the funeral expense was required due to the accident.
- Documentation: Receipts, funeral plans, or medical records showing the expense was incurred.
- Proportionality: Whether the cost aligns with standard funeral services in NSW.
- Timing: Whether the expense was incurred within the claim period (typically 52 weeks from the accident date).
For example, if a claimant’s relative died in a car crash, the insurer would assess if the funeral cost was directly related to the accident and whether the claimant provided proper documentation.
Practical Steps for Claimants
To support a funeral expense claim:
- Gather all relevant receipts and invoices.
- Document the relationship between the expense and the accident.
- Submit the claim to the at-fault driver’s insurer within the statutory time limits.
- Seek legal advice if the insurer denies the claim or disputes the amount.
Time Limits and Dispute Options
Claimants must notify the insurer of funeral expenses within 52 weeks of the accident. If the insurer rejects the claim, claimants can request a review or seek mediation through SIRA. Legal advice is recommended if disputes escalate.
When to Seek Independent Advice
Funeral expenses can be complex, especially if the claim involves multiple parties or disputes. A solicitor can help ensure all evidence meets SIRA’s requirements and that the claimant understands their rights under the MAIA.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.