How Insurers Evaluate Shared Liability in Partial Fault Claims
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).
In New South Wales, insurers assess liability in partial fault claims by determining the proportion of responsibility each party has for the accident. Under the Motor Accident Injuries Act 2017, the claimant is entitled to compensation regardless of fault, but insurers evaluate shared liability based on evidence such as traffic rules, witness statements, and police reports. This process is critical for determining the scope of benefits available under the Compulsory Third Party (CTP) scheme.
Key Factors in Assessing Shared Liability
Insurers consider several factors when evaluating shared liability in Ballina NSW:
- Contributory negligence: If the claimant is at fault, the insurer may reduce the claim amount. For example, if a driver runs a stop sign and collides with another vehicle, the claimant’s fault could affect the compensation.
- Evidence from the accident: Police reports, medical records, and witness accounts help establish fault. Insurers may also review traffic camera footage or vehicle data recorders.
- SIRA guidelines: The State Insurance Regulatory Authority (SIRA) provides frameworks for assessing liability, including how to interpret 'threshold injuries' and the 52-week statutory benefit rules.
Practical Steps for Claimants
To support a partial fault claim, claimants should:
- Gather medical records to document injuries.
- Preserve accident reports and witness details.
- Collect photographs of the scene and vehicle damage.
- Keep income records if claiming weekly benefits.
- Document communication with insurers to track claims progress.
Time Limits and Dispute Resolution
CTP claims must be submitted within five years of the accident under the Motor Accident Injuries Act 2017. If the insurer disputes liability, claimants can request a review by SIRA or seek independent legal advice. For injuries meeting the 'threshold injury' criteria, weekly benefits typically end after 52 weeks, unless the claimant’s condition worsens.
When to Seek Legal Advice
Claimants should consult a legal professional if:
- The insurer refuses to pay benefits.
- There is disagreement over the extent of injuries.
- The claimant is unsure how to navigate the CTP process.
Example of Shared Liability Assessment
Consider a collision where both drivers are at fault. Insurer A (Driver 1) and Insurer B (Driver 2) must determine the proportion of fault. If Driver 1 ran a stop sign and Driver 2 was speeding, the insurers might allocate 60% fault to Driver 1 and 40% to Driver 2. This affects the amount of compensation each insurer must pay.
Next Steps
CTP entitlements depend on the accident date, injury type, and claim history. To request contact about your circumstances, complete the quick, no obligation enquiry form.