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 be compensable under the Compulsory Third Party (CTP) insurance scheme. Insurers assess liability based on whether the injury arose from the accident, the nature and extent of the hearing loss, and the strength of medical and accident evidence. The Motor Accident Injuries Act 2017 (MAIA) governs all CTP claims in NSW, including those involving auditory injuries. To establish liability, the claimant must demonstrate that the hearing loss was caused by the motor accident, not pre-existing conditions, and that it meets the criteria for compensation under the scheme.
The legal framework for CTP claims in NSW is set out in the Motor Accident Injuries Act 2017 and administered by the State Insurance Regulatory Authority (SIRA). Under this framework, liability for hearing loss is not automatically assumed. Insurers assess whether the injury was caused by the impact forces, airbag deployment, or other crash-related events. Acoustic trauma, defined as hearing damage from sudden, intense noise such as a vehicle collision or airbag inflation, is recognised as a potential injury under the CTP scheme. However, the insurer will not accept liability without medical evidence linking the hearing loss to the accident.
SIRA’s guidance on motor accident claims confirms that hearing loss must be clinically verified and documented by an accredited medical practitioner. The assessment includes audiometric testing (hearing tests) conducted within a reasonable timeframe after the accident. Insurers will review the results to determine if the hearing loss is consistent with acoustic trauma, such as a sudden sensorineural hearing loss, rather than gradual or age-related decline. The presence of tinnitus, dizziness, or ear pain following the crash may also support the claim, but these symptoms alone are not sufficient.
To prove liability, claimants must provide evidence that includes:
- A detailed medical report from an audiologist or specialist ear, nose and throat (ENT) doctor, including audiometry results before and after the accident.
- A clinical history that notes the onset of symptoms immediately after the crash.
- Photographic or video evidence of the vehicle’s interior, particularly airbag deployment, if available.
- Witness statements describing loud noises at the time of impact.
- A written account of the accident from the claimant, including details of the crash sequence and any noise experienced.
Insurers may also request a review by an independent medical assessor, particularly if the hearing loss is not immediately apparent or if there is a dispute over causation. The claimant’s prior hearing health, including any history of noise exposure at work or recreation, will be considered. However, a pre-existing hearing condition does not automatically bar compensation if the accident caused a measurable worsening.
A key factor in liability assessment is whether the hearing loss constitutes a threshold injury under the MAIA. A threshold injury is one that significantly impairs a person’s ability to perform daily activities. For hearing loss, this means the injury must result in a whole person impairment (WPI) of at least 10% as assessed under the Motor Accident Guidelines. If the WPI is below 10%, the claimant may still receive treatment and care benefits and weekly income payments, but cannot claim damages for pain and suffering or loss of enjoyment of life.
In some cases, insurers may dispute causation, particularly if the hearing loss was not diagnosed until months after the accident. Insurers may argue that the injury was not caused by the crash, or that it was pre-existing. In such cases, the claimant may need to obtain a second medical opinion or apply for a review through SIRA. Disputes over liability are not uncommon and may require formal review or, in some cases, a determination by the NSW Civil and Administrative Tribunal (NCAT).
An example: A pedestrian was struck by a car while crossing a street in Sydney. The impact was sudden, and the person reported a loud bang and immediate ringing in both ears. An audiogram taken two weeks later showed a 40 dB hearing loss in the right ear, consistent with acoustic trauma. The medical report linked the injury to the crash. The insurer accepted liability for treatment and care benefits and weekly income payments, but disputed the claim for damages due to a WPI below 10%. The claimant sought a review, and a second assessment confirmed a WPI of 12%, which allowed the claim for damages to proceed.
Time limits apply. A claim for compensation must generally be made within three years of the accident date. Failure to meet this deadline may prevent a claim from being heard. However, the three-year period may be extended in limited circumstances, such as if the injury was not immediately apparent or if the claimant was under 18 at the time of the accident.
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