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).
When you accept a lump sum settlement offer from a NSW Compulsory Third Party (CTP) insurer, retaining specific evidence is critical to protecting your claim. This guide explains what records to keep, how they impact your legal position, and what happens if you lose important documents.
Why Evidence Matters in Lump Sum Settlements
NSW CTP lump sum settlements are based on the insurer’s assessment of your injury’s severity and long-term effects. To ensure your settlement reflects accurate medical and financial evidence, you must retain:
- Medical records showing the nature and extent of your injuries
- Settlement documentation such as offer letters, medical reports, and settlement agreements
- Income records to support claims for lost wages or future earning capacity
- Witness statements or accident reports that corroborate your version of events
These records help verify that the settlement amount aligns with the insurer’s assessment of your injury. Losing them could weaken your position if disputes arise later.
Practical Steps to Retain Key Evidence
- Store medical records securely - Keep copies of all treatment notes, scans, and specialist reports. Digital copies should be backed up separately.
- Review settlement documentation carefully - Ensure you understand the terms of the offer, including any exclusions or conditions. Keep the original documents in a safe place.
- a Maintain a log of all correspondence with the insurer, including emails, letters, and phone records.
- Preserve evidence of ongoing treatment - If you continue medical care after settlement, retain updated records to show that your condition has not improved.
Time Limits and Dispute Risks
NSW CTP claims must be settled within 52 weeks of the accident if only threshold injuries are involved (Motor Accident Injuries Act 2017 s 4.4). If you accept a lump sum offer before this period, you may lose the right to claim additional benefits for future injuries. Always confirm with your insurer whether the offer covers all potential claims.
If you lose important documents, the insurer may argue the settlement was based on incomplete information. For example, if you discard medical records showing worsening symptoms, the insurer could claim the lump sum was too high and seek a reduction.
When to Seek Legal Advice
Consult a solicitor if:
- You’re unsure whether the settlement covers all your losses
- You need to challenge an offer you believe is unfair
- You’ve lost key documents and fear the settlement may be invalid
A lawyer can help you understand how to preserve evidence and protect your rights under NSW CTP rules.
Final Steps After Accepting a Settlement
Once you accept a lump sum offer, treat the settlement as a final resolution. However, retain all evidence for at least 5 years, as insurers may revisit claims if new information emerges. If you’re unsure about the fairness of the offer, seek independent legal advice before signing.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.