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).
Motor vehicle accidents at intersections in regional NSW often result in injury and complex claims under the Compulsory Third Party (CTP) insurance scheme. The most frequent errors involve delays in reporting, incomplete documentation, and misunderstanding how fault and injury thresholds affect entitlements. These mistakes can reduce or prevent access to treatment, income support and damages. The Motor Accident Injuries Act 2017 (MAIA) governs all CTP claims in NSW, including those arising from intersections and roundabouts, and applies regardless of whether the incident occurred in a city, town or remote area.
The CTP scheme provides statutory benefits for injury, treatment and care, and weekly income payments. These are generally available even if the claimant was partly at fault, but entitlements depend on the nature and severity of injuries. A claimant must demonstrate that they sustained an injury that meets the legal definition of a threshold injury under the Motor Accident Guidelines. This includes injuries such as a spinal nerve-root injury with neurological signs, or a permanent impairment of 10% or more. If only threshold injuries result, benefits are limited after 52 weeks under MAIA section 4.4, unless the claim proceeds to court for damages.
Common mistakes in regional NSW include failing to seek medical treatment promptly, not recording details of the accident at the scene, and not notifying the insurer within the required timeframe. A delay in reporting may affect the insurer’s ability to investigate and may result in a claim being denied. Claimants should record the time, weather, road conditions, vehicle positions, and any witness contact details immediately after the accident. Photographs of the scene, vehicle damage and visible injuries are valuable evidence. Medical records must be obtained early and maintained throughout the claim.
In regional areas, access to medical specialists and rehabilitation services may be limited. This can affect the assessment of impairment and the ability to return to work. Claimants should seek treatment from a medical practitioner as soon as possible and keep a record of all appointments. If a claimant is not receiving weekly income payments, they should confirm whether they have met the eligibility criteria under the MAIA, including the 10% whole person impairment threshold and the 52-week rule for threshold injuries.
SIRA (the State Insurance Regulatory Authority) administers the CTP scheme and handles disputes. If a claim is rejected or benefits are reduced, the claimant may request a review. SIRA provides guidance on making a claim, including how to submit evidence and what to include in a claim form. A claimant may also seek a formal review or apply to the NSW Civil and Administrative Tribunal (NCAT) if they believe a decision was incorrect. However, these steps must be taken within strict time limits, which vary depending on the nature of the claim and the date of the accident.
A hypothetical example: A cyclist was struck by a car at a rural intersection in June 2024. The cyclist sustained a neck injury and was diagnosed with a spinal nerve-root injury causing numbness in the left arm. The cyclist delayed seeking medical treatment for three weeks and did not report the accident to the insurer until six weeks later. The insurer declined to pay weekly income benefits on the grounds that the claim was not reported in a timely manner. The claimant may still be entitled to treatment and care benefits, but the delay may affect the assessment of fault and the ability to claim damages later.
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