Permanent Impairment Threshold in NSW CTP 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, the permanent impairment threshold for motor accident compensation is set at 10% whole person impairment. This means injuries must result in a minimum of 10% permanent impairment to qualify for certain benefits under the Compulsory Third Party (CTP) scheme. Understanding this threshold is critical for injured people seeking compensation.
How the Threshold is Determined
The threshold is assessed by a medical practitioner using the Motor Accident Guidelines. A whole person impairment assessment must show that the injury causes a permanent loss of function, such as reduced mobility, vision, or cognitive ability. The assessor evaluates clinical signs, test results, and the impact on daily activities. For example, a broken leg that results in a 12% impairment rating would meet the threshold, while a minor sprain with no lasting effect would not.
Implications for Injured People
If your injury meets the 10% threshold, you may be eligible for weekly income payments, treatment and care benefits, and compensation for ongoing care. However, benefits are generally limited to 52 weeks after the accident if the injury is a 'threshold injury' only. If your injury results in a higher impairment rating, such as 25%, you may also be entitled to additional compensation for loss of earnings, future care, or other long-term impacts.
Time Limits and Dispute Options
Benefits under the CTP scheme are subject to time limits. For example, weekly payments stop after 52 weeks unless the injury is severe enough to require ongoing care. If you disagree with the assessment of your impairment, you may need to seek a second opinion or challenge the decision through the NSW Civil and Administrative Tribunal (NCAT). It is important to act promptly, as delays can affect your ability to claim.
When to Seek Legal Advice
The threshold rules can be complex, especially when combined with other factors like contributory fault or overlapping claims. A solicitor can help you understand your options, ensure your claim is properly assessed, and challenge decisions if necessary. Always seek advice before making decisions that could affect your entitlements.
Next Steps
If your injury meets the 10% threshold, you may be eligible for benefits under the CTP scheme. However, the exact amount of compensation depends on the nature of your injury, the impact on your life, and the evidence provided. To request contact about your circumstances, complete the quick, no obligation enquiry form.