Understanding Shared Liability in NSW CTP Claims
In a motor accident in Greater Sydney where more than one party contributed to the crash, liability may be shared. Under the Motor Accident Injuries Act 2017, the insurer of the vehicle that caused the accident is responsible for providing compensation, but if the injured person also contributed to the crash, their entitlements may be reduced. This is known as shared liability or contributory fault. The impact on returning to daily activities depends on how much fault is assigned to the injured person, as this affects the amount of compensation available for treatment, care, and income loss.
How Shared Liability Influences Daily Activity Recovery
The ability to return to daily activities such as work, household tasks, social engagement, and personal care is a key factor in assessing compensation under the CTP scheme. When liability is shared, the insurer may reduce the weekly income payments and treatment and care benefits by the percentage of fault attributed to the injured person. For example, if a claimant is found 30% at fault, their weekly payments may be reduced by 30%. This reduction applies to all benefits, including those intended to support recovery and reintegration into daily life.
The Motor Accident Injuries Regulation 2017 and SIRA’s Motor Accident Guidelines clarify that shared liability does not prevent access to benefits, but it does affect the quantum. The claimant must still demonstrate that the accident caused a loss of function or capacity in daily activities, regardless of fault. Medical evidence showing a reduction in ability to perform tasks such as cooking, cleaning, driving, or attending appointments is essential.
Practical Steps to Support a Claim for Daily Activity Limitations
To establish that the accident has affected daily activities, claimants should:
- Seek prompt medical assessment and treatment, including a record of any functional limitations.
- Keep a daily journal detailing difficulties with household tasks, mobility, work, or social participation.
- Preserve photographs of the accident scene, vehicle damage, and any visible injury.
- Collect contact details of witnesses who can confirm the nature of the crash and the claimant’s pre-accident activity level.
- Maintain records of lost income, work hours missed, and any changes in household responsibilities.
SIRA advises that all evidence should be submitted to the insurer as soon as possible. Delays may affect the insurer’s ability to assess the claim, particularly where ongoing treatment is required.
Time Limits and the Impact of Shared Liability on Recovery
There is no fixed time limit for making a CTP claim in NSW, but the claim must be made within three years of the accident date. The earlier a claim is lodged, the better the chance of preserving evidence and securing timely treatment and care benefits.
If a claimant is assessed as having a threshold injury (such as a soft tissue injury), they may still be eligible for treatment and care benefits and weekly payments, but only up to 52 weeks unless a higher threshold is met. Where a claimant is found to have contributed to the accident, the 52-week limit still applies, but the weekly payments are reduced by the fault percentage.
When to Seek Independent Advice
Shared liability can complicate recovery, particularly when a claimant is trying to return to work or manage household duties. The insurer’s assessment of fault may not fully reflect the claimant’s actual contribution, especially if the accident involved complex driving conditions or a sudden hazard. In such cases, independent legal advice may help to challenge the fault allocation or negotiate a more favourable outcome.
A claimant may also wish to seek advice if they believe their ability to return to daily activities has been underestimated, or if they are experiencing ongoing functional limitations that were not initially recorded. SIRA provides guidance on how to request a review of a decision, but the process can be complex and time-consuming.
Hypothetical Example: Shared Liability and Daily Activity Recovery in Sydney
A 42-year-old office worker in Sydney was involved in a collision at a busy intersection in the Eastern Suburbs. The driver of the other vehicle ran a red light, but the claimant had been distracted by a mobile phone and failed to brake in time. The insurer assigned 25% fault to the claimant. As a result, weekly income payments were reduced by 25%. The claimant was unable to return to full-time work for six months due to neck and back pain, and required assistance with household tasks. Medical reports confirmed a 20% reduction in capacity for daily living activities. The claimant was able to access treatment and care benefits and a reduced weekly payment, but the shared liability meant that the total compensation for recovery was lower than if they had been found fully uninjured.
Next Steps
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.