25 March 2024

In New South Wales (NSW), the Compulsory Third Party (CTP) insurance scheme provides coverage for individuals involved in motor vehicle accidents. One critical aspect of navigating this system is understanding threshold injuries. These injuries play a significant role in determining the compensation individuals may receive under the scheme.

Threshold injuries, previously known as "minor injuries “, are "soft tissue injuries" or psychiatric injuries that are not “recognised psychiatric illness” and refer to specific types of injuries outlined in the Motor Accident Injuries Act 2017 (NSW). These injuries include sprains, strains, and whiplash-associated disorders. While they can cause significant pain and discomfort, they are generally considered less severe than other types of injuries, such as fractures or spinal cord damage. As such, if you suffer a threshold injury you may not be able to make a lump sum common law claim. You will however still be entitled to all your statutory benefits.

It's essential to note that statutory benefit compensation for medical expenses and lost income is not subject to the threshold injury restriction. Individuals with threshold injuries can still receive compensation for these expenses, which can be significant, especially in cases where rehabilitation or ongoing medical treatment is necessary.

The NSW CTP Claims Scheme includes provisions for disputing the categorisation of injuries. If an injured person believes their injury should not be classified as a threshold injury, they can seek a review through the Personal Injury Commission (PIC). Medical evidence in the form of treating doctor’s reports and medico-legal reports are usually gathered and relied upon in such an application. Keeping detailed records of symptoms and treatment in the form of a statement can also assist.

It's essential for individuals to understand their rights and obligations under the NSW CTP Claims Scheme. Seeking legal advice from legal professionals experienced in personal injury law can help you navigate the complexities of the system and ensure fair compensation is obtained for your injuries.

Threshold injuries play a significant role in the NSW CTP Claims Scheme. Understanding the categorisation of injuries, the compensation caps for threshold injuries, and the avenues for disputing classifications is crucial for individuals involved in motor vehicle accidents. By seeking appropriate medical treatment, keeping detailed records, and seeking legal advice when necessary, you can navigate the system effectively and secure the compensation you deserve for your injuries.

 

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