How NSW CTP Insurers Evaluate Shared Liability in Partial Fault Claims
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).
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).
If you're involved in a motor accident where both parties share responsibility, NSW CTP insurers assess liability based on fault contribution, evidence, and SIRA guidelines. In Newcastle and Hunter, insurers use a structured process to determine how much each party's actions contributed to the crash. This article explains the factors insurers consider, how SIRA's guidance influences decisions, and practical steps to understand liability assessments.
Legal Framework for Partial Fault Claims
New South Wales' Motor Accident Injuries Act 2017 (MAIA) governs CTP claims. Under this scheme, insurers must consider the proportion of fault each party played in the accident. SIRA (State Insurance Regulatory Authority) provides official guidance on assessing liability, including how to evaluate fault in partial fault cases.
The MAIA does not assign blame but focuses on the degree to which each party contributed to the crash. Insurers use this framework to determine the share of compensation each party must pay. In Newcastle and Hunter, this process is applied consistently, though local factors like traffic conditions or road design may influence assessments.
Factors Insurers Consider in Partial Fault Claims
When assessing shared liability, insurers evaluate:
- Fault contribution: How much each party's actions contributed to the crash. For example, if one driver ran a stop sign and the other was speeding, the fault may be split 60:40.
- Evidence: Police reports, witness statements, and traffic camera footage are critical. Insurers also consider vehicle damage and skid marks.
- SIRA guidelines: SIRA's Motor Accident Claims page outlines how to assess fault in cases where multiple parties are at fault. Insurers use these guidelines to ensure consistency.
In the Newcastle and Hunter regions, insurers may also consider local traffic patterns. For instance, a driver who missed a stop sign at a busy intersection may be deemed more at fault than one who missed a sign in a quiet area.
Practical Steps for Claimants
To understand how insurers assess liability, claimants should:
- Gather evidence: Document the accident scene, collect witness contact details, and retain any relevant medical records.
- Understand fault percentages: Insurers typically assign a percentage of fault to each party. For example, a 30% fault rating means the claimant may receive 70% of the compensation.
- Review SIRA's guidance: SIRA's 'What You Can Claim' page explains how fault percentages affect the types of benefits available.
A hypothetical example: If a driver in Newcastle missed a stop sign (60% fault) and another driver ran a red light (40% fault), the insurer would split compensation based on these percentages. However, the exact split depends on the evidence and SIRA's assessment.
Time Limits and Dispute Options
CTP claims must be made within 52 weeks of the accident if the injury is a 'threshold injury' (a minor injury under MAIA guidelines). If the injury is more severe, there is no time limit. Insurers may dispute liability assessments, but claimants can request a review through SIRA.
Disputes are resolved by SIRA, which evaluates whether the insurer's fault assessment aligns with the evidence and guidelines. In Newcastle and Hunter, claimants should contact SIRA directly if they believe their liability assessment is incorrect.
When to Seek Legal Advice
If your claim involves complex fault issues, overlapping injuries, or disputes over liability, it may be wise to consult a legal professional. While this article provides general information, individual cases depend on specific facts. For example, a claimant who suffered a threshold injury in Hunter may need to demonstrate that the insurer's 52-week time limit applies.
Next Steps
CTP liability assessments in Newcastle and Hunter depend on the accident date, fault contribution, and evidence. To request contact about your circumstances, complete the quick, no obligation enquiry form.