Vehicle Modifications, What Changed After 2017 Reforms in NSW
Where a person's only injuries resulting from the accident are threshold injuries, weekly benefits and treatment and care generally cease after 52 weeks (ss 3.11 and 3.28).
The 2017 reforms to NSW Compulsory Third Party (CTP) motor accident compensation introduced significant changes to how vehicle modifications are assessed in injury claims. These changes, outlined in the Motor Accident Injuries Act 2017 and supported by SIRA guidelines, now require claimants to provide detailed evidence of how modifications improve mobility or safety after an accident. This shift impacts rural and remote areas where access to specialists or modified vehicles may be limited.
Key Changes to CTP Claims Involving Vehicle Modifications
Under the 2017 reforms, insurers must evaluate whether a vehicle modification is 'reasonably necessary' to enable the injured person to perform daily activities. This replaces the previous approach of focusing solely on the cost of modifications. SIRA’s updated guidelines (https://www.sira.nsw.gov.au/claims/motor-accidents/what-you-can-claim) clarify that modifications must be directly linked to the injury’s impact on mobility or independence.
For example, a claimant who sustained a spinal injury requiring hand controls must now demonstrate how these modifications reduce their reliance on others or improve their ability to work. Insurers now scrutinise medical reports, occupational therapy assessments, and evidence of the modification’s necessity, not just its existence.
How Insurers Assess Modifications in Rural/Remote NSW
In rural areas, claimants may face challenges proving the 'reasonably necessary' standard due to limited access to specialists or modified vehicles. Insurers may request additional evidence, such as:
- A doctor’s opinion on how the modification addresses the injury’s effects
- Evidence of the modification’s cost and how it aligns with the injury’s severity
- Statements from family members or carers about the modification’s impact
SIRA’s guidelines stress that modifications must be 'reasonably necessary' and not merely 'desirable.' This means claimants must show a direct link between the modification and the injury’s impact on their daily life.
Practical Steps for Claimants in Rural Areas
- Document the modification’s purpose: Keep records of how the modification helps with daily tasks, such as cooking, dressing, or mobility.
- Obtain specialist reports: A physiotherapist or occupational therapist can explain how the modification addresses the injury’s effects.
- Submit evidence of cost: Provide receipts or quotes for the modification, as insurers may challenge its necessity.
- Seek early legal advice: Rural claimants may need to engage a solicitor familiar with remote areas to navigate delays in accessing specialists or documentation.
Time Limits and Dispute Options
CTP claims must be submitted within 52 weeks of the accident for certain benefits, but modifications may extend this period if they are tied to long-term injuries. If an insurer disputes the modification’s necessity, claimants can request a review under the Motor Accident Injuries Act 2017, s 4.4. This allows for a reassessment of the modification’s relevance to the injury.
When to Seek Legal Advice
If an insurer refuses to cover a modification or disputes its necessity, claimants should consult a solicitor. Rural areas may require additional steps to ensure claims are processed fairly, especially if there are delays in accessing medical evidence or specialists.
Conclusion
The 2017 reforms have made it more complex to claim compensation for vehicle modifications in NSW, particularly in rural and remote areas. Claimants must now provide detailed evidence of how modifications improve mobility or safety. While the legal framework is the same across NSW, practical challenges in rural areas may require tailored approaches. To request contact about your circumstances, complete the quick, no obligation enquiry form.