Vehicle Modifications in CTP Claims: Common Mistakes to Avoid
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).
Vehicle modifications can significantly impact NSW Compulsory Third Party (CTP) claims, particularly when they affect injury severity or recovery. Common mistakes by claimants with modified vehicles often lead to disputes or reduced compensation. This article explains how CTP insurers assess modifications, outlines practical steps to avoid errors, and highlights key considerations for claimants in the Illawarra and South Coast regions.
How CTP Insurers Evaluate Vehicle Modifications
NSW CTP claims are governed by the Motor Accident Injuries Act 2017 and SIRA guidelines. Insurers assess whether modifications influenced the injury or recovery. For example, hand controls or adaptive aids may affect mobility assessments. SIRA’s What you can claim page explains that modifications are evaluated to determine if they impacted the injury’s severity or treatment needs.
A critical mistake is failing to document modifications. Claimants must provide evidence of all vehicle alterations, including installation dates, manufacturer details, and how the modifications functioned at the time of the accident. Without this, insurers may assume the vehicle was standard, potentially reducing compensation.
Common Errors with Modified Vehicles
- Not recording modification details: Failing to keep records of modifications, such as receipts or maintenance logs, can lead to disputes. For instance, if a hand control was installed to assist with a pre-existing condition, insurers need proof it was functional at the time of the accident.
- Ignoring how modifications affect injuries: Modifications like reinforced frames or upgraded brakes may alter injury outcomes. Claimants must explain how the modifications interacted with the accident. For example, a modified suspension might influence the extent of whiplash injuries.
- Overlooking SIRA’s assessment criteria: SIRA evaluates whether modifications contributed to the injury. If a claimant’s vehicle had a modified exhaust system that affected stability, this must be disclosed to avoid claims being rejected as incomplete.
Practical Steps to Avoid Mistakes
- Document all modifications: Keep records of installation, maintenance, and any impact on vehicle performance. This includes photos, invoices, and technical specifications.
- Seek medical evidence linking modifications to injuries: A doctor’s report should detail how the modification influenced the injury. For example, if a modified seat caused pressure points, this must be noted.
- Notify the insurer promptly: Delays in disclosing modifications may lead to claims being denied. SIRA’s Making a motor accident claim guide advises submitting all evidence within 52 weeks of the accident, as benefits for threshold injuries (soft tissue injuries) typically end after this period.
When to Seek Legal Advice
Disputes over modifications often require legal intervention. If an insurer disputes the relevance of a modification or claims it reduced injury severity, a solicitor can help. For example, if a claimant’s modified hand controls were deemed to have mitigated an injury, legal advice can clarify whether this affects compensation.
Example: A Claimant’s Mistake
A claimant in the Illawarra region had a modified hand control installed after a previous injury. During a CTP claim, the insurer argued the modification reduced the severity of a new knee injury. The claimant had not documented the hand control’s function or provided medical evidence linking it to the knee injury. This led to a dispute over whether the modification affected the claim. A solicitor later advised that the claimant must demonstrate how the hand control interacted with the new injury to avoid the claim being dismissed.
Next Steps
CTP claims involving modified vehicles require careful documentation and legal understanding. Time limits, such as the 52-week statutory benefit period for threshold injuries, apply. To ensure your claim is assessed fairly, complete the quick, no obligation enquiry form to discuss your circumstances with a legal professional.