What the 10% Permanent Impairment Threshold Means for Caregivers in NSW
Under the Motor Accident Injuries Act 2017 (NSW), a person may claim damages for non-economic loss, such as pain and suffering, if they have a permanent impairment of at least 10% of the whole person. This 10% threshold applies to all claimants, including those who have provided care for family members before the accident. The impairment must be assessed by a qualified medical practitioner using the Australian Medical Association’s Whole Person Impairment (WPI) guidelines, which are recognised under the Act.
A permanent impairment of 10% or more is not automatically granted. It must be established through medical evidence and formal assessment. The threshold does not consider caregiving roles directly, but it does not exclude a claim simply because the injury is not severe. The law focuses on measurable physical or psychological impairment, not on social or family roles.
How Caregiving Impact Is Considered in CTP Claims
The law does not assess or value caregiving roles as part of the 10% threshold. However, SIRA’s Motor Accident Guidelines acknowledge that a person’s role as a caregiver can be relevant when assessing the impact of an injury on their life. If an injury limits a claimant’s ability to care for a child, elderly relative, or person with a disability, this may be considered in the evaluation of non-economic loss.
For example, if a parent who regularly assisted a child with a chronic condition is injured and can no longer perform those duties, the emotional and practical burden of that change may be reflected in a claim for damages. The claimant must provide evidence of actual change in function, not just a general assertion of difficulty. This evidence can include medical reports, personal statements, and accounts from family members.
Evidence That Supports a Claim Involving Family Impact
To support a claim where caregiving capacity has been affected, it is essential to gather credible evidence that shows a change in daily life. Key documents include:
- A medical report from a treating practitioner detailing the nature, duration, and functional impact of the injury.
- A written statement from the claimant describing how the injury has affected their ability to perform caregiving tasks, such as assisting with personal care, managing household routines, or transporting family members.
- Statements from family members, including partners, children, or other relatives, describing the shift in responsibility and any resulting strain on family life.
- Records of changes in household duties, such as hiring external help, relying on extended family, or adjusting work hours.
- Photographs, diary entries, or logs that demonstrate a reduction in participation in family activities or caregiving routines.
SIRA does not require proof of formal caregiving roles. However, claims based on family impact must be supported by evidence that shows a real and measurable change in function.
Time Limits and When to Act
A claim for compensation under the CTP scheme must be made within 3 years of the motor accident. This time limit applies to all claims, including those based on permanent impairment. The 3-year period begins on the date the injury occurred, not when the impairment was assessed or when maximum medical improvement was reached.
If a claimant is still receiving treatment or has not yet reached maximum medical improvement, they may continue to receive treatment and care benefits and weekly income payments under the CTP scheme. However, to claim damages for non-economic loss, the 10% threshold must be met and formally assessed.
Where a person’s only injuries are threshold injuries, such as soft tissue injuries that result in a permanent impairment of 10% or more, weekly benefits and treatment and care benefits are generally limited after 52 weeks. This is because the Motor Accident Injuries Act 2017, sections 3.11 and 3.28, provide that benefits cease after 52 weeks if no other injury type is present.
When Independent Advice May Be Useful
The 10% threshold and its interaction with family roles can be complex, particularly when a claimant has been a primary caregiver. The law does not increase the threshold because of caregiving responsibilities. However, the way a claim is presented, through medical evidence, narrative statements, and expert opinion, can affect whether a court or insurer accepts that the injury has caused significant harm.
It is advisable to seek independent legal advice if:
- The injury has significantly reduced your ability to care for a family member and you believe this should be reflected in your claim.
- You have been told your impairment is below 10% but believe it is higher due to functional limitations.
- You are unsure whether your claim for damages is viable, especially if you have not yet received a formal impairment assessment.
SIRA allows claimants to obtain an independent assessment from a different medical practitioner if they disagree with the initial assessment.
Hypothetical Example: A Parent’s Injury in Greater Sydney
A mother in Sydney’s Inner West was injured in a car accident while driving her two children to school. She sustained a soft tissue injury to her neck and back, which caused ongoing pain and limited mobility. Prior to the accident, she was the primary caregiver for her 10-year-old son, who has a chronic condition requiring daily assistance with medication, meals, and school transport.
After the accident, she was unable to help her son as she previously did. Her partner took on additional responsibilities, and she required assistance with basic tasks. An independent medical assessment found a 12% whole person impairment, including functional limitations affecting her ability to lift, stand for long periods, and manage household tasks.
Her claim for damages was supported by medical evidence, a statement from her son’s school, and a written account from her partner detailing the change in family dynamics. The insurer accepted the claim, and she received compensation for non-economic loss, which included recognition of the impact on her family roles.
Next Steps
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.