Seatbelt Non-Use and CTP Claim Eligibility for Passengers in NSW
A passenger who was not wearing a seatbelt at the time of a motor accident in NSW may still be eligible for compensation under the Compulsory Third Party (CTP) insurance scheme. The scheme is designed to provide financial support for injuries sustained in a motor accident, regardless of fault. However, not wearing a seatbelt can affect the amount of compensation available, particularly in claims for damages. The Motor Accident Injuries Act 2017 (MAIA) and the Motor Accident Injuries Regulation 2017 set out the legal framework for claims, including how a passenger’s conduct may be considered when assessing entitlements.
Legal Framework for CTP Claims in NSW
In NSW, CTP compensation is governed by the Motor Accident Injuries Act 2017. This law applies to all motor accidents occurring on or after 1 December 2017. For accidents that occurred before that date, the older Motor Accidents Compensation Act 1999 may apply, but the current scheme remains in force for most claims.
Under the MAIA, a passenger who sustains injury in a motor accident may be entitled to treatment and care benefits, weekly income payments, and, in some cases, damages. The entitlement to damages is subject to a threshold: the injury must be a threshold injury as defined in the Act, or the injury must result in a whole person impairment of at least 10%. A threshold injury includes certain soft tissue injuries, but not all injuries qualify.
How Seatbelt Non-Use Affects CTP Claims
The failure to wear a seatbelt does not automatically disqualify a passenger from receiving CTP benefits. The CTP scheme is no-fault in principle, meaning that a person’s conduct, including not wearing a seatbelt, does not prevent them from receiving treatment and care benefits or weekly income payments.
However, if a passenger seeks damages for injury, the court may consider whether not wearing a seatbelt contributed to the severity of the injury. Under the MAIA, a claim for damages may be reduced if the injured person’s failure to wear a seatbelt is found to have contributed to the injury. This is known as a reduction in damages for contributory fault.
SIRA, the body responsible for administering the CTP scheme in NSW, states that the extent to which a passenger’s failure to wear a seatbelt affects a claim for damages depends on the evidence. If medical evidence shows that the injury would have been less severe had the seatbelt been worn, the court may reduce the damages awarded. This reduction is not automatic and is determined on a case-by-case basis.
Practical Steps and Evidence That Matter
To support a CTP claim, a passenger should take the following steps immediately after the accident:
- Seek medical attention and keep all records, including diagnosis, treatment notes, and any reports from medical practitioners.
- Preserve any physical evidence, such as the seatbelt, clothing, or vehicle damage.
- Take photographs of the vehicle, the scene, and any visible injuries.
- Record the names and contact details of witnesses.
- Notify the insurer of the CTP provider as soon as possible, using the claim form available on the SIRA website.
Medical evidence is critical. A treating practitioner should document whether the injury was caused or worsened by the impact, and whether a seatbelt would have reduced the risk or severity of injury. A medical report that includes an opinion on the role of seatbelt use in the injury outcome may be used by the insurer or a court to assess contributory fault.
Time Limits and Dispute Options
A claim for CTP benefits must be made within a reasonable time after the accident. While there is no fixed deadline for making a claim, delays may affect the insurer’s ability to investigate and assess the claim. The insurer may request that a claim be made within 6 months of the accident, but this is not a legal deadline.
If a claim is denied or a reduction in damages is proposed, the passenger may request an internal review from the insurer. If the dispute remains unresolved, the matter may be referred to the NSW Civil and Administrative Tribunal (NCAT) for a determination. The passenger may also seek legal advice to assess whether a claim for damages should proceed.
Hypothetical Example
A passenger in a car in Greater Sydney was not wearing a seatbelt when the vehicle collided with a tree. The passenger sustained a whiplash injury and a minor back strain. Medical evidence showed that the injury was consistent with a sudden forward impact, and that a seatbelt would have significantly reduced the risk of neck and back injury. The insurer offered treatment and care benefits and weekly income payments, but proposed a 20% reduction in any claim for damages due to contributory fault. The passenger may accept this offer or seek a review.
Next Steps
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.