Time limits for CTP claims involving seatbelt non-use by passengers
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 in a motor accident in NSW must generally make a claim for compensation under the Compulsory Third Party (CTP) scheme within three years of the accident date. This time limit applies regardless of whether the passenger was at fault or not wearing a seatbelt. The Central Coast region in NSW is subject to the same state-wide time limits and legal rules as the rest of the state. Failure to lodge a claim within this period may result in the claim being barred, unless an exception applies under the Motor Accident Injuries Act 2017.
How seatbelt non-use affects CTP claim eligibility
Not wearing a seatbelt does not automatically disqualify a passenger from claiming CTP compensation. Under NSW law, the CTP scheme is no-fault in principle, meaning that a person’s entitlement to benefits is not determined by who caused the accident. However, seatbelt non-use may affect the amount of compensation awarded if the injury is considered to have been worsened by not wearing a seatbelt.
If a passenger was not wearing a seatbelt and suffered an injury that could have been less severe or avoided with proper restraint, the insurer may argue that the injury was contributed to by the passenger’s failure to wear a seatbelt. This is known as a contributory fault assessment. The insurer may reduce the compensation payable by a percentage that reflects the degree of fault attributed to the passenger. This assessment must be supported by medical evidence and is determined under the Motor Accident Injuries Act 2017 and the Motor Accident Injuries Regulation 2017.
What evidence matters for a CTP claim
To support a CTP claim, a passenger should gather and preserve the following evidence:
- Medical records detailing the nature, severity, and treatment of injuries sustained in the accident.
- A police report or accident report, if one was completed at the scene.
- Photographs of the vehicle, damage, and any visible injuries taken shortly after the accident.
- Witness contact details and statements, if available.
- Records of lost income, if the injury prevented return to work.
- Correspondence with the insurer, including claim forms and responses.
A medical practitioner’s report that addresses whether not wearing a seatbelt contributed to the injury is particularly important. The report should state whether the injury would have been less severe or avoided if the seatbelt had been worn.
Practical steps and time-sensitive actions
The first step after a motor accident is to seek medical attention, even if injuries are not immediately apparent. Delayed symptoms, such as neck pain or back strain, are common after a crash. Prompt medical treatment ensures a record is established and supports any claim for treatment and care benefits.
Passengers should notify their insurer as soon as possible. While there is no strict deadline for notification, delays may hinder the insurer’s ability to investigate the claim. The insurer must be informed within 12 months of the accident to preserve the right to claim benefits, including weekly payments and treatment and care benefits.
A claim for damages must be made within three years of the accident. This is a strict time limit under the Motor Accident Injuries Act 2017. The three-year period begins on the date of the accident, not the date of injury diagnosis or treatment commencement.
When to seek legal advice
A passenger who was not wearing a seatbelt may still be entitled to compensation, but the claim may be challenged on grounds of contributory fault. It is advisable to seek independent legal advice if:
- The insurer proposes reducing compensation because of seatbelt non-use.
- The injury is serious or long-term, and the claim involves damages for pain and suffering.
- The claim involves a threshold injury, which may affect eligibility for damages.
Legal advice can help assess whether the insurer’s assessment of contributory fault is reasonable and whether a claim for damages is viable.
Hypothetical example
A 32-year-old passenger on the Central Coast was not wearing a seatbelt during a motor accident on 15 March 2024. The vehicle was struck from the side, and the passenger sustained a whiplash injury and a minor back strain. Medical records show the injury was diagnosed within a week and treatment began immediately. The passenger made a claim on 10 April 2024, within the three-year limit. The insurer accepted the claim but proposed a 20% reduction in damages due to contributory fault from not wearing a seatbelt. The passenger sought legal advice and successfully challenged the reduction based on medical evidence showing the injury was not significantly worsened by seatbelt non-use.
Next steps
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.