How Shared Liability Works in NSW CTP Claims
In a motor accident in New South Wales, if more than one driver contributed to the crash, the law allows for fault to be shared between them. This is known as shared liability or partial fault. Under the Motor Accident Injuries Act 2017, the amount of compensation an injured person receives may be reduced in proportion to their own contribution to the accident. This applies whether you were a driver, passenger, pedestrian, cyclist or motorcyclist in the Illawarra or South Coast region.
The insurer of the party found to be at fault is responsible for paying statutory benefits, including treatment and care, weekly income payments, and, where applicable, damages. If more than one party is at fault, each insurer may be required to pay a share of the total compensation based on the degree of fault assigned to each party.
Key Differences Between Full Fault and Partial Fault CTP Claims
In a full fault claim, one driver is found to be entirely responsible for the accident. In a partial fault claim, responsibility is divided between two or more parties. This division is determined by the insurer or, if there is a dispute, by a tribunal or court.
Under the CTP scheme, you are still entitled to statutory benefits such as treatment and care, and weekly income payments, regardless of your own level of fault. However, the amount of damages you may claim for pain and suffering, loss of enjoyment of life, and future care needs may be reduced if you are found to have contributed to the accident.
The Motor Accident Injuries Regulation 2017 sets out how fault is assessed. The insurer will review the evidence, including police reports, witness statements, and any available surveillance or dashcam footage, to determine the percentage of fault for each party.
How Shared Liability Affects Your Compensation
If you are found to have contributed to the accident, your compensation for damages may be reduced proportionally. For example, if you are assessed as 20% at fault, your damages award may be reduced by 20%. This applies even if you were not at fault for the initial impact but contributed to the escalation or outcome of the crash.
This reduction only applies to damages. Statutory benefits such as treatment and care, and weekly income payments, are not reduced based on your own fault. These benefits are available to all injured people, regardless of fault, as long as the injury occurred in a motor accident covered by CTP insurance.
In the Illawarra and South Coast regions, claims involving shared liability are common on major roads such as the Princes Highway, the F3 Freeway, and in suburban intersections. The complexity of these claims often arises from conflicting accounts, unclear road markings, or the presence of multiple vehicles in a single incident.
Practical Steps to Take When Dealing with Shared Liability
If you were injured in a motor accident where fault is shared, the following steps are essential:
- Seek medical attention immediately and keep all records of treatment, including prescriptions, therapy notes, and medical reports.
- Notify your insurer as soon as possible, providing a full account of the accident, including any witness contact details.
- Preserve any evidence: photographs of the scene, vehicle damage, road conditions, and dashcam footage if available.
- Do not admit fault or accept a settlement offer without understanding how fault is being assessed.
- Keep a copy of all correspondence with insurers, including emails, letters, and call logs.
Insurers may assess your own contribution to the accident based on the evidence. If you believe the assessment is incorrect, you may request a review or dispute the decision through the relevant process.
Time Limits and Dispute Options
There are time limits for making a claim under the CTP scheme. You must generally make a claim within three years of the accident date. This applies even if fault is disputed or shared.
If you disagree with how fault has been apportioned, you may request a review from the insurer. If the dispute remains unresolved, you may apply to the NSW Civil and Administrative Tribunal (NCAT) for a determination. NCAT has jurisdiction to review fault assessments and determine the appropriate share of liability.
In some cases, particularly where a claim is complex or involves a dispute over the extent of injury, a medical assessment may be required to determine the level of impairment and whether the injury meets the threshold for damages.
When to Seek Independent Advice
Shared liability claims can be complex, especially where there are multiple parties, conflicting evidence, or a dispute over the degree of fault. If you are unsure how fault is being assessed, or if you believe your contribution to the accident has been overstated, it is advisable to seek independent legal advice.
An experienced solicitor can help you understand your rights, review the evidence, and ensure that your claim is assessed fairly. They can also assist in preparing a submission to NCAT if a dispute arises.
Hypothetical Example
A cyclist in Wollongong was struck by a car while riding on the side of the Princes Highway. The police report noted that the driver had failed to yield at a crosswalk, but the cyclist was not wearing a helmet and was riding on the road without a designated bike lane. The insurer assigned 10% fault to the cyclist for not wearing a helmet and 90% to the driver for failing to yield. The cyclist received treatment and care benefits and weekly income payments. The damages claim was reduced by 10% due to the shared liability assessment.
Next Steps
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.