A passenger who was not wearing a seatbelt in a motor vehicle accident in New South Wales may still be entitled to compensation under the Compulsory Third Party (CTP) scheme. The insurer’s assessment of the claim will consider whether the failure to wear a seatbelt contributed to the injury. This does not automatically bar a claim, but it may affect the amount of compensation awarded.
What the Law Says About Seatbelt Non-Use
Under the Motor Accident Injuries Act 2017, a person who was not wearing a seatbelt at the time of a motor accident may have their compensation reduced if the insurer can show that the injury was worsened by not using the seatbelt. This is known as a contributory factor. The insurer must prove that the injury would have been less severe or avoided entirely if the seatbelt had been worn.
The law does not treat seatbelt non-use as a bar to compensation. If the injury was caused by the impact of the crash and not by ejection or contact with the vehicle interior due to not wearing a seatbelt, the claim may proceed without reduction.
What Evidence Insurers Use
Insurers rely on objective evidence to assess whether seatbelt non-use contributed to the injury. Key evidence includes:
- Medical reports detailing the nature and cause of the injury.
- Accident reports or police statements that record seatbelt use or non-use.
- Photographs of the vehicle interior showing the seatbelt not fastened or damaged.
- Statements from the driver or other passengers confirming whether the seatbelt was worn.
In rural and remote areas, evidence may be harder to obtain. For example, if no witnesses were present at the scene, the insurer may rely on medical evidence and vehicle inspection reports to determine whether the injury was related to seatbelt non-use.
Special Considerations in Rural and Remote NSW
In remote parts of NSW, claimants may face additional challenges in securing a fair outcome. Delays in accessing medical treatment due to distance from hospitals may affect the insurer’s assessment of injury severity. However, the CTP scheme still requires insurers to consider the full context of the claim, including travel time and access to care.
Insurers must also account for higher costs associated with medical treatment, specialist transport, or rehabilitation services in remote areas when calculating weekly income payments or treatment and care benefits. These factors are part of the overall assessment but do not override the legal test for contributory fault.
When Compensation May Be Reduced
If the insurer finds that not wearing a seatbelt contributed to the injury, they may reduce the compensation. This reduction applies to weekly income payments and treatment and care benefits, but not to damages for pain and suffering or permanent impairment, if those are otherwise eligible.
A claim may still proceed even if the injury is classified as a threshold injury under the Motor Accident Injuries Act 2017. A threshold injury includes soft tissue injuries, such as whiplash, that result in a permanent impairment of at least 10%. However, if the only injuries sustained are threshold injuries, weekly benefits and treatment and care benefits generally cease after 52 weeks from the date of the accident, as provided under sections 3.11 and 3.28 of the Act.
What to Do If Your Claim Is Disputed
You must submit your claim within 52 weeks of the accident. If you miss this deadline, the insurer may refuse to process it unless you can show the injury was not immediately apparent or you were unaware of your rights.
If the insurer reduces or denies your claim because of seatbelt non-use, you can request a review through the State Insurance Regulatory Authority (SIRA). You may also apply to the NSW Civil and Administrative Tribunal (NCAT) if the dispute cannot be resolved internally. These processes are available to all claimants, including those in rural and remote areas.
When to Seek Help
If your claim is reduced or denied due to seatbelt non-use, it is important to seek independent advice. A solicitor can review the evidence, challenge the insurer’s assessment, and ensure your rights under the CTP scheme are upheld. This is particularly important in rural areas where access to legal services may be limited.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.