What Funeral Expenses Are Covered Under 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).
Under the NSW Compulsory Third Party (CTP) scheme, funeral expenses are covered if they are directly related to the funeral of the deceased and are necessary to ensure the deceased is properly buried or cremated. Eligible expenses include transportation of the deceased to the funeral home or crematorium, burial or cremation costs, clothing or shrouds for the deceased, funeral home fees, and coffin or casket costs. SIRA does not cover non-essential items such as flowers, memorials, or guest transportation.
Common Mistakes to Avoid When Claiming Funeral Expenses
- Failing to Document Expenses: SIRA requires detailed records of all funeral costs. Keep receipts, invoices, and correspondence with funeral directors. Smaller expenses, such as transportation or clothing costs, must also be documented.
- Including Non-Essential Costs: Expenses like floral arrangements or guest transportation are not covered. Including these in your claim may result in a denial.
- Not Notifying the Insurer Promptly: Claims must be submitted within a reasonable time frame. Delays can lead to disputes over the validity of your claim.
- Assuming All Expenses Are Covered: Not all funeral costs are eligible. For example, if the deceased was not buried or cremated, certain expenses may not qualify. Always review SIRA's guidelines to confirm.
How SIRA Assesses Funeral Expense Claims
SIRA evaluates funeral expense claims based on four criteria: necessity, direct relationship to the funeral process, documentation, and reasonableness. An expense must be essential for burial or cremation to qualify. For example, a custom coffin may be denied unless it was necessary for the funeral.
Time Limits and Next Steps
You have 52 weeks from the date of the accident to claim certain benefits, including funeral expenses. If the deceased's funeral was not completed within this period, legal advice may be needed to explore alternative options. Always check the accident date and claim timing.
When to Seek Professional Advice
General information cannot determine whether a claim is available in an individual case. If you're unsure whether your funeral expenses qualify for coverage, or if you've been denied a claim, it's important to seek professional advice. Every claim depends on its own facts.
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