Understanding your rights after a car accident in NSW

In Australia, every state and territory has a scheme to protect people who are involved in a motor vehicle accident. In New South Wales, this includes compulsory third party insurance (or a ‘green slip’), which you need to buy before you can register your car.

If you’re injured in a motor vehicle accident in NSW, there are different claims you can make, depending on who was at fault and the severity of your injuries.

In this article, we’ll discuss your rights after a car accident. You can also contact Main Lawyers to discuss your specific circumstances and what you may be eligible for.

Compulsory third party (CTP)

In NSW, compulsory third party insurance or CTP covers a driver if they injure another person in an accident, including pedestrians, passengers, cyclists, motorcyclists and drivers.

This means the driver and others who drive the vehicle aren’t liable for injuries that the vehicle causes in a car accident. 

If you were injured in the accident, there are different claims you might make:

Statutory benefits 

This is for people who have suffered injuries in motor vehicle accidents, no matter who was at fault. Payments can cover medical expenses, care and income payments.

If you have a threshold injury (minor injury), you can claim statutory benefits for up to 52 weeks. 

Common law claim

You can claim this lump sum compensation if you have more serious injuries (above-threshold) and weren’t mostly at fault for the accident. You may be able to claim for:

• economic loss – loss of income or superannuation
• non-economic loss – pain and suffering (if whole person impairment exceeds 10%).

If you were partly responsible for the accident, you could still claim as you may be eligible for some compensation based on the percentage of fault (i.e. contributory negligence). 

As of November 2023, you can make a common law claim immediately and don’t have to wait 2 years before settling your claim.

To make a claim, you need to know the insurer of the vehicle you believe is at fault. In NSW, you can go to the SIRA website and enter the details you have about the other vehicle and find that information.

If the other car is uninsured or unregistered, you can still claim through the Nominal Defendant, SIRA, which provides compensation for people injured in accidents caused by uninsured or unidentified drivers.

Claim for property damage

CTP insurance doesn’t cover vehicles or other property that are damaged in the accident.

To cover the cost of property repairs, you would need to sue the at-fault driver for damages either through their motor vehicle insurance or personally if they’re not insured.

If they disagree that they were at fault, you need to decide whether to start court proceedings to try to obtain the money.

Why your claim might be rejected

Motor vehicle accident claims can be complex and your claim may be rejected for reasons you don’t understand. If this has happened to you, it’s worth checking with a legal professional, like our team at Main Lawyers. We have helped many clients who thought they weren’t eligible to receive anything.

Here are some common reasons claims are rejected:

You were at fault

CTP doesn’t usually cover the at-fault driver. If you were injured in a road accident caused by someone else, you’re covered by the at-fault driver’s CTP policy. However, sometimes several drivers may be partially responsible for the accident. In this situation, you might be eligible for a reduced payment. Don’t assume you’re not eligible until you find out.

You have only threshold (minor) injuries

You may not be able to claim a lump sum payment if the insurer believes you sustained only minor injuries. But you might be able to get your injuries reassessed, which might show that you have an above-threshold injury.

You didn’t lodge on time

Each stage in the claim process has a strict deadline. For example, you have 28 days to lodge your claim for weekly payments if you want to get back paid to the accident date (though you may still be back paid if you have a good reason for the delay).

You have 3 months to lodge your application for personal injury benefits and 3 years to lodge your common law claim. However, you can lodge this claim at any time once your injuries are deemed above the threshold (non-minor). 

If you engage a legal professional to work on your behalf, they will ensure all paperwork is completed and submitted on time.

You have less than 10% WPI but claimed non-economic loss

Your injuries must be assessed as having more than 10% whole person impairment to claim non-economic loss (for pain and suffering). However, it might take time for the extent of your impairment to become apparent.