How NSW CTP Partial Fault Claims Work After 2017 Reforms
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).
The 2017 reforms to NSW’s Compulsory Third Party (CTP) insurance scheme shifted from a no-fault system to one where claimants may receive reduced compensation if they contributed to an accident. This change, under the Motor Accident Injuries Act 2017 (MAIA), impacts how fault is assessed and how much injured parties can claim in Greater Sydney.
Key Changes to Shared Liability Claims
Before 2017, CTP claims in NSW were no-fault: drivers could claim compensation regardless of who was at fault. Now, the system uses a partial fault model. If an accident involved multiple parties, the claimant’s compensation may be reduced based on their own contribution to the crash. This applies to all motor vehicle accidents in NSW, including those in Greater Sydney.
Fault percentages are determined by the Motor Accident Guidelines and are calculated by assessing factors such as speed, road conditions, and whether the claimant followed traffic rules. For example, if a driver ran a red light and a cyclist failed to yield, the fault might be split 60:40, reducing the cyclist’s compensation by 40%.
Practical Implications for Claimants
Under the new rules, claimants must provide evidence of their own conduct to determine fault. This includes:
- Police reports detailing the accident
- Witness statements
- CCTV footage
- Driver’s license records
- Medical evidence showing how the accident affected the claimant
If the claimant is found to have contributed to the accident, their compensation may be reduced proportionally. For instance, a claimant who suffered a soft-tissue injury (threshold injury) might receive 50% of the usual benefits if fault is 50:50.
How to Calculate Fault Percentage
The fault percentage is determined by the Motor Accident Guidelines, which outline how to assess contributions to an accident. SIRA provides tools to help claimants understand how fault affects their compensation. For example:
- A 10% contribution to the accident may result in a 10% reduction in benefits
- A 50% contribution may reduce benefits by 50%
This calculation applies to all claim types, including those involving pedestrians, cyclists, and motorcyclists in Greater Sydney.
When to Seek Legal Advice
The 2017 reforms introduced complex fault calculations that can affect compensation amounts. Claimants should seek legal advice if:
- They are unsure how fault is being assessed
- Their compensation is being reduced due to their own contribution
- They need help gathering evidence such as medical records or accident reports
Legal professionals can help claimants understand how their specific circumstances fit into the new shared liability framework.
Next Steps for Claimants
If you’ve been injured in a motor accident in Greater Sydney and are unsure how the 2017 reforms affect your claim, it’s important to act promptly. Time limits apply to CTP claims, and evidence must be preserved to support fault assessments. Every claim depends on its own facts, and the reforms may change how much compensation you receive based on shared liability.
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