How Seatbelt Non-Use Affects a Passenger’s CTP Claim in NSW
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).
A passenger who was not wearing a seatbelt at the time of a motor accident in New South Wales may still be entitled to compensation under the Compulsory Third Party (CTP) insurance scheme. However, the failure to wear a seatbelt may affect the amount of compensation payable, particularly in relation to damages for injury. Under the Motor Accident Injuries Act 2017, a person’s entitlement to compensation is not automatically barred by not wearing a seatbelt. Instead, the insurer or the Motor Accidents Authority may reduce the amount of compensation if it is established that the injury was worsened by the failure to wear a seatbelt. This is assessed on a case-by-case basis, considering the nature of the injury, the circumstances of the accident, and the extent to which not wearing a seatbelt contributed to the harm suffered.
The Role of Caregivers and Family in Rural and Remote NSW
For caregivers and family members in rural and remote areas of NSW, managing a CTP claim for a passenger who did not wear a seatbelt presents unique challenges. Access to medical services, legal advice, and claim support is often limited. Caregivers may need to act on behalf of a passenger who is unable to manage the claim due to injury, age, or disability. In such cases, the caregiver may be required to provide evidence of their role, the passenger’s dependency, and the impact of the injury on the family’s daily life. SIRA (the State Insurance Regulatory Authority) recognises that family and caregiver support is a legitimate consideration in assessing claims, particularly where the injured person is a child, a person with a disability, or an elderly family member.
What Evidence Matters in a CTP Claim with Seatbelt Non-Use
To support a claim, the passenger or their caregiver should gather and preserve the following evidence:
- Medical records from the time of the accident and throughout recovery, including assessments of injury severity and treatment progress.
- A police report or accident report, if one was made.
- Photographs of the vehicle, the scene, and any visible injuries at the time of the accident.
- Witness statements, particularly from other passengers or bystanders who observed whether the seatbelt was worn.
- Records of lost income, if the passenger was employed and unable to work.
- Documentation of caregiving responsibilities, such as time logs, correspondence with healthcare providers, or evidence of changes in household duties.
In remote areas, obtaining timely medical documentation or arranging for an independent medical assessment may be difficult. Caregivers should contact SIRA or a local community health service as early as possible to discuss options for evidence collection and claim management.
How SIRA Assesses Claims Involving Caregiver and Family Support
SIRA evaluates claims involving caregiver and family support under the Motor Accident Injuries Act 2017 and the Motor Accident Injuries Regulation 2017. The assessment considers whether the injured person requires ongoing care, and whether a family member or caregiver has provided or is expected to provide that care. The value of this support may be included in the claim as a non-economic loss, particularly where the injury has significantly disrupted family life or required a major shift in household responsibilities.
Where a passenger was not wearing a seatbelt, SIRA will assess whether the injury was exacerbated by that failure. For example, if a passenger suffered a neck injury in a low-speed impact and was not wearing a seatbelt, SIRA may consider whether the injury would have been less severe if the seatbelt had been worn. However, the presence of a seatbelt is not a defence to liability, and the insurer remains responsible for the accident, regardless of seatbelt use.
Practical Steps for Families in Rural and Remote Areas
Families in rural and remote NSW should:
- Report the accident to the police and insurer as soon as possible, even if the injury seems minor.
- Seek medical attention immediately, even if symptoms are delayed.
- Keep a daily record of symptoms, treatment, and any changes in daily functioning.
- Contact SIRA’s claims assistance team via phone or online to discuss the claim process and request support.
- Engage a legal or claims assistance service if the claim is complex, or if there is a dispute over the amount of compensation.
SIRA provides information and support through its website and regional outreach. Families in remote areas may also contact local Aboriginal Medical Services, community health centres, or the NSW Rural and Remote Legal Service for assistance.
Hypothetical Example: A Family in Outback NSW
A 72-year-old woman was a passenger in a car driven by her grandson in a regional town in NSW. She was not wearing a seatbelt. The car collided with a tree. She sustained a whiplash injury and a minor concussion. Her grandson, who was her primary caregiver, took her to a local clinic. The clinic later referred her to a specialist in a regional city. The family was concerned that her failure to wear a seatbelt would prevent her from receiving compensation.
The claim was submitted through SIRA. The insurer accepted liability but questioned whether the injury was worsened by not wearing a seatbelt. Medical evidence showed that the injury was consistent with a low-speed impact, and that not wearing a seatbelt likely contributed to the neck strain. However, the injury was not severe enough to meet the threshold for damages. The family was entitled to treatment and care benefits and weekly income payments for 52 weeks, as the injury was not considered a threshold injury. The caregiver’s time spent managing appointments and assisting with daily tasks was recognised as a non-economic loss and included in the claim.
Time Limits and Dispute Options
There is a time limit to make a CTP claim in NSW. Generally, a claim must be made within three years of the accident. However, if the injured person is a child, the time limit starts when they turn 18. In remote areas, delays in accessing medical care or legal advice may affect this deadline. It is important to act as soon as possible.
If a claim is denied or the offered compensation is considered inadequate, the claimant or caregiver may request a review from SIRA or apply to the NSW Civil and Administrative Tribunal (NCAT) for a decision. Disputes involving seatbelt non-use are often resolved through review, but legal advice may be needed to ensure the claim is properly presented.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.