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 or acoustic trauma resulting from a motor vehicle accident in New South Wales may be compensable under the Compulsory Third Party (CTP) insurance scheme. The time limits for making a claim depend on the nature of the injury, the date of the accident, and whether the injury was apparent at the time. In Greater Sydney, as across NSW, claims for hearing loss must generally be made within three years of the accident date, or within three years of when the injury was first diagnosed, whichever is later. This applies to injuries caused by crash forces, airbag deployment, or sudden loud noise during a motor accident.
The Motor Accident Injuries Act 2017 (MAIA) governs CTP claims in NSW. Under this law, a person who suffers a hearing loss or acoustic trauma as a result of a motor accident may be entitled to treatment and care benefits, weekly income payments, and, in some cases, damages. The claim must be made through the insurer of the at-fault vehicle, or through the Nominal Defendant if no insurer is available. The claim must be submitted to the State Insurance Regulatory Authority (SIRA), which oversees the CTP scheme and ensures claims are processed under the law.
To establish a claim for hearing loss, the injury must be medically confirmed. This includes audiometric testing, medical assessments by an ear, nose and throat specialist, and documentation of the onset and progression of hearing loss. Evidence such as a medical report stating that the hearing loss is attributable to the accident, and a record of when symptoms first appeared, is essential. If the injury was not immediately apparent, the three-year time limit begins from the date the injury was diagnosed, not from the date of the accident.
Acoustic trauma may be considered a soft-tissue injury under the MAIA if it results from trauma to the ear or auditory system, even if there is no visible damage to the ear drum. The Motor Accident Guidelines define soft-tissue injuries as those affecting muscles, ligaments, or nerves, and include injuries to the auditory nerve or inner ear structures. A diagnosis of acoustic trauma must be supported by objective clinical evidence, such as audiometry results showing a shift in hearing thresholds, and a medical opinion linking the injury to the accident.
If the hearing loss is classified as a threshold injury under the MAIA, the claimant may not be eligible for damages unless they meet the threshold test. This requires a whole person impairment (WPI) of at least 10% due to the injury. For hearing loss, the WPI is assessed using the Australian National Health and Medical Research Council (NHMRC) guidelines, which consider the degree and type of hearing loss, and whether it affects daily function. A WPI of 10% or more may allow a claim for damages, but only if the injury is not limited to soft-tissue injuries and the claimant has not already received 52 weeks of treatment and care benefits.
Where a claimant’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 52-week rule applies regardless of whether the injury is still ongoing. If the hearing loss persists beyond 52 weeks, the claimant may still be entitled to treatment and care benefits if they can demonstrate a continuing need for medical treatment, but they cannot claim damages unless they meet the threshold test.
A common mistake is assuming that hearing loss from an airbag deployment or sudden noise during a crash is automatically compensable. The injury must be directly attributable to the accident, not pre-existing or caused by other factors. For example, if a person had a history of hearing loss before the accident, the claim will focus on whether the accident worsened the condition. Medical evidence must clearly distinguish between pre-existing and accident-related hearing loss.
A practical example: A pedestrian in Sydney’s inner west was struck by a car in 2024. The impact caused a loud noise and a sudden pressure change, resulting in immediate hearing loss. Medical tests confirmed a 40 dB hearing loss in the right ear, consistent with acoustic trauma. The injury was not apparent until a follow-up appointment three weeks after the accident. The claim was made within the three-year limit, and the claimant received treatment and care benefits and weekly income payments. Because the WPI was assessed at 12%, the claimant was eligible for damages.
Time limits are strictly enforced. A claim must be made within three years of the accident, or within three years of when the injury was first diagnosed, whichever is later. If the claim is not made within this period, the right to claim compensation may be lost. The claimant must also notify the insurer as soon as possible after the accident, and keep records of all medical treatment, correspondence, and accident details.
If a claim is denied or a time limit is approaching, it is important to seek advice from a qualified legal or claims professional. The SIRA website provides information on the claims process, but it does not offer individual legal advice. The decision to proceed with a claim, or to dispute a denial, depends on the facts, medical evidence, and the date of the accident.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.