Time limits for CTP claims in NSW with shared fault
In New South Wales, time limits for Compulsory Third Party (CTP) insurance claims apply even when fault is shared between parties. The claim must be made within 3 years of the motor accident, regardless of whether the injured person was partly at fault. This 3-year period is set out in the Motor Accident Injuries Act 2017 and applies uniformly across NSW, including in car parks, private driveways, and public roads. The law does not allow an extension based on shared fault alone.
How shared fault affects CTP claim time limits
Shared fault does not alter the 3-year time limit for making a CTP claim. Whether the injured person contributed to the accident, or whether another driver was partially responsible, the claim must still be lodged within 3 years of the accident date. The law treats the claim as a single event, not a series of fault-based actions. This means that even if a driver was 30% at fault, the 3-year deadline still starts from the date of the accident.
What must be established to make a claim
To make a CTP claim, the injured person must show that a motor vehicle was involved in a motor accident, and that they sustained injury as a result. The claim may proceed even if the injured person was partly at fault. The insurer will assess fault and may reduce the compensation amount proportionally. However, the claim must still be made within the 3-year limit.
Evidence and practical steps
Key evidence includes medical records showing injury and treatment, a police report if available, photographs of the scene and vehicle damage, witness contact details, and any correspondence with insurers. It is important to preserve these records and not delay in notifying the insurer. The claim must be made through the insurer of the party at fault, or through the Nominal Defendant if no insurer is available.
Time limits and dispute options
If a claim is not made within 3 years, it may be barred unless a court grants an extension. A court may allow an extension if it is satisfied that the claimant acted with reasonable diligence and that it would be unconscionable to deny the claim. However, this is a high threshold and not guaranteed. The claimant must apply to the NSW Civil and Administrative Tribunal (NCAT) or a court within a reasonable time after the 3-year period has passed.
Hypothetical example
A pedestrian was struck by a car in a car park in Sydney on 15 March 2024. The driver admitted to being distracted and not seeing the pedestrian. The pedestrian was injured and received treatment. The driver was found to be 70% at fault, and the pedestrian 30% at fault due to not looking before stepping into the car park. The claim must still be made by 15 March 2027, three years from the accident date, regardless of the shared fault.
When to seek advice
The 3-year time limit is strict and does not vary based on fault allocation. If there is any doubt about whether a claim can be made on time, or whether the insurer has denied a claim, it is important to seek advice early. Legal advice may help clarify whether a claim is still possible, especially if the claimant was not informed of their rights in a timely way.
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