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).
Hearing loss resulting from acoustic trauma in a motor accident in New South Wales may now be compensable under the Motor Accident Injuries Act 2017 (MAIA), but the process and outcomes have changed significantly since the 2017 reforms. These changes affect how hearing loss is assessed, whether it qualifies as a threshold injury, and what benefits may be available. The reforms introduced a more structured framework for assessing injuries, including auditory damage from sudden loud noises such as airbag deployment, vehicle impact, or explosion. This framework prioritises early assessment, medical evidence, and the distinction between minor and significant injuries. The changes apply across Greater Sydney and all other regions of NSW, regardless of where the accident occurred.
The Motor Accident Injuries Act 2017 replaced the older Motor Accidents Compensation Act 1999 and established a new system for compensating motor accident injuries. Under MAIA, a claim for hearing loss must be assessed against the statutory threshold for injury. This means that a person must have a whole person impairment (WPI) of at least 10% to qualify for damages, unless they have a threshold injury that meets specific criteria. For hearing loss, the assessment is based on the degree of hearing impairment as measured by audiometry, and whether it results from acoustic trauma during the accident.
Acoustic trauma refers to hearing damage caused by a sudden, intense noise during a motor accident, such as from an airbag inflating, a vehicle collision, or a tyre explosion. Unlike gradual hearing loss, acoustic trauma often presents as a sudden, measurable reduction in hearing in one or both ears. The Motor Accident Injuries Regulation 2017 and the Motor Accident Guidelines set out how such injuries are to be assessed. The guidelines state that hearing loss must be objectively demonstrated through audiometric testing, and that the injury must be attributable to the accident, not pre-existing conditions or other causes.
A claim for hearing loss under the 2017 framework may result in three types of benefits: treatment and care benefits, weekly income payments, and damages. Treatment and care benefits cover the cost of medical treatment, including hearing aids, cochlear implants, and audiological assessments. Weekly income payments may be available if the hearing loss affects the person’s ability to work, provided they meet the income loss test. Damages are only available if the injury meets the threshold for a serious injury, which includes a WPI of at least 10% due to the accident.
A key change under the 2017 reforms is that if a person’s only injuries are threshold injuries, weekly benefits and treatment and care benefits are generally limited to 52 weeks from the date of the accident. This means that if hearing loss is the only injury and it qualifies as a threshold injury, compensation for ongoing treatment may be capped after 52 weeks unless a claim for damages is successful. This limit does not apply if the injury is not a threshold injury or if damages are awarded.
Practical steps for a claimant include seeking medical assessment within days of the accident, particularly from an audiologist or ear, nose and throat specialist. It is essential to preserve records of the accident, including any witness statements, photographs of the vehicle, and details of airbag deployment. Medical records must include audiometric test results, a clinical assessment of the injury, and a statement linking the hearing loss to the accident. The claimant must notify their insurer or the insurer of the at-fault party within a reasonable time, though there is no fixed deadline under MAIA.
A common issue in hearing loss claims is distinguishing between pre-existing hearing loss and new damage from the accident. Medical evidence must clearly show a change in hearing function that occurred at the time of the accident. This may involve comparing pre-accident hearing tests (if available) with post-accident results. If the hearing loss is not confirmed by audiometry, or if it is not linked to the accident, the claim may not succeed.
A hypothetical example: A 38-year-old driver in Sydney was involved in a head-on collision where the airbag deployed. They reported immediate ringing in the ears and reduced hearing. An audiogram taken three days later showed a 35-decibel loss in the right ear. The medical report confirmed that the loss was not present before the accident and was consistent with acoustic trauma. The claimant received treatment and care benefits for 52 weeks, and a damages claim was successful because the WPI was assessed at 12% due to the hearing loss.
Disputes may arise over the assessment of WPI, the cause of the hearing loss, or the duration of benefits. If a claim is denied or benefits are stopped, a review may be requested through the insurer or SIRA. Legal advice is often necessary to challenge a decision or to pursue a damages claim.
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