How Insurers Assess Liability in CTP Claims Involving Vehicle Modifications
In New South Wales, liability in a Compulsory Third Party (CTP) motor accident claim is not automatically affected by vehicle modifications, including hand controls or other adaptive aids used after a disabling injury. Insurers assess liability based on whether the modification contributed to the accident, not on the modification itself. The Motor Accident Injuries Act 2017 and the Motor Accident Injuries Regulation 2017 set the legal framework for CTP claims, including those involving modified vehicles. The key question is whether the modification was safe, properly installed, and compliant with road safety laws at the time of the accident.
Factors Insurers Consider in Liability Assessments
Insurers examine several factors when evaluating liability in claims involving vehicle modifications. These include:
- Whether the modification was approved by a registered motor vehicle tester and met Australian Design Rules
- Whether the modification was installed by a licensed or qualified person
- Whether the modification impaired the driver’s ability to control the vehicle or contributed to a loss of control
- Whether the driver was legally permitted to operate the vehicle with the modification (e.g., valid licence and vehicle registration)
- Whether the modification was used in a way that deviated from its intended purpose
A modification that was properly installed, legally permitted, and used as intended does not, by itself, establish fault. The insurer will assess whether the modification played a role in the accident, not whether it existed.
The Role of SIRA in Assessing Modified Vehicle Claims
The State Insurance Regulatory Authority (SIRA) provides guidance on how CTP insurers should assess claims involving vehicle modifications. SIRA’s position is that a modification does not, in itself, make a driver liable for an accident. Instead, liability turns on whether the modification was a contributing factor to the crash. This includes evaluating whether the driver’s actions, such as improper use or over-reliance on a modification, led to a loss of control.
SIRA also confirms that a driver who uses a vehicle modification as a result of a pre-existing or accident-related injury is not automatically barred from claiming compensation. The focus remains on the circumstances of the accident, not on the driver’s need for adaptation.
Practical Steps and Evidence That Matter
If you have a vehicle modification and were involved in a motor accident, gather and preserve the following evidence:
- Copies of the modification approval certificate and installation records
- A signed statement from the installer confirming the modification was fitted correctly and met safety standards
- Medical records showing the need for the modification, including a report from your treating medical practitioner
- Photographs of the vehicle showing the modification and its location
- A copy of your driver’s licence and vehicle registration, showing that the vehicle was legally permitted to be on the road with the modification
- Any accident report, including police or insurer statements
These documents help establish that the modification was lawful, safe, and not a cause of the accident. They may also support a claim for treatment and care benefits, weekly income payments, or damages if injury occurred.
Time Limits and Dispute Options
There are time limits for making a CTP claim in NSW. You generally have three years from the date of the accident to start a claim. This includes claims involving vehicle modifications. If you believe an insurer has wrongly denied liability or failed to assess your claim fairly, you may request a review under the Motor Accident Injuries Act 2017. You can also apply to the Civil and Administrative Tribunal (NCAT) for a determination if the dispute remains unresolved.
When to Seek Independent Advice
If you have a vehicle modification and are involved in a motor accident, you may need independent legal advice if:
- The insurer denies liability based on the modification
- You believe the modification was not a factor in the accident but was used as a reason to reject your claim
- You have a complex injury history and need to establish that the modification was necessary and not a risk factor
An experienced solicitor can help you understand your rights and ensure that your claim is assessed fairly under the Motor Accident Injuries Act 2017.
Hypothetical Example
A driver with a spinal injury uses hand controls installed by a licensed mechanic and approved under Australian Design Rules. The vehicle was registered and roadworthy. During a routine turn, the driver lost control due to a sudden road surface hazard and collided with a barrier. The insurer initially questioned liability because of the hand controls. However, medical evidence confirmed the driver had no loss of function in the hands, and the mechanic’s report showed the hand controls were properly fitted and not involved in the loss of control. The claim was accepted because the modification did not contribute to the accident.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.