In NSW, there are two types of claims you can make for psychological injury:
- A ‘no-fault’ claim.
- A ‘common law damages’ claim.
No-fault claims
You can make a no-fault claim regardless of who was at fault for the accident. You’re entitled to claim for most psychological injuries: from minor (threshold) injuries to ‘non-minor’ injuries.
Minor (threshold) injuries
Generally speaking, minor injuries are those that are not recognised psychiatric illnesses. However, some recognised illnesses, including acute stress disorder and adjustment disorder, also qualify as minor injuries.
You’re entitled to claim for:
- Lost income if you’re unable to work.
- Hospital, medical and rehabilitation expenses.
- Professional care or domestic help from friends and family.
Your payments will stop after 12 months unless your insurer approves further medical treatment.
Non-minor injuries
Non-minor injuries are recognised psychiatric illnesses like PTSD and depression.
You could receive compensation for:
- Weekly payments for lost income.
- Hospital and medical expenses.
- Rehabilitation and home care costs.
Generally speaking, you are only entitled to weekly payments for up to 24 months. However, if you begin a common law damages claim, you may receive weekly payments for up to 5 years.
Common law claims
You may be entitled to make an additional common law damages claim if:
- The accident was not your fault.
- You have more than minor injuries.
The exact amount of compensation you receive depends on your degree of Whole Person Impairment (WPI). This is assessed by a registered psychiatrist according to the Psychiatric Impairment Rating Scale (PIRS).
Understanding the PIRS
The PIRS breaks down the impact of your psychological injuries into six main categories:
- Self-care and personal hygiene: including completing everyday activities like showering, clothing and feeding yourself.
- Social and recreational activities: whether you’re able to go out to cinemas, restaurants or other recreational venues, as well as if you belong to clubs or associations.
- Travel: if you’re able to travel alone and to new environments without supervision or a support person.
- Social functioning: your ability to form relationships and communicate effectively to get along with other people.
- Concentration, persistence and pace: whether you can sustain your attention for long enough to complete common work tasks.
- Adaptation: also called ‘deterioration’, this refers to your ability to attend work regularly and work without constant supervision.
For each category, your psychiatrist will give you a rating of one to five, ranging from no impairment to extreme impairment. Your WPI is calculated based on your rating for each of the six categories.
You can find the exact calculation table in section 6.225 of the SIRA Motor Accident Guidelines.
Determining your compensation
Your compensation is based on your percentage of WPI.
10% or less WPI
You may be eligible to claim for past and future ‘economic losses’, such as:
- Lost earnings.
- Loss of future earning capacity.
More than 10% WPI
In addition to the economic losses listed above, a WPI of more than 10% means you can claim for ‘non-economic losses’. These include:
- Pain and suffering.
- Loss of amenities of life.
- Reduced life expectancy.
- Disfigurement.
Since non-economic losses do not have a strict dollar value attached, you could receive a substantial lump sum settlement.
For more information on road accident compensation in NSW, read our detailed guide.
Can I claim on behalf of my child?
If your child is involved in or witnesses a road accident, they may develop a psychological injury as a result. While they cannot bring proceedings themselves, the court will appoint a ‘next friend’ to do so on their behalf. Usually, this is a parent or other relative. To learn more about making a road accident claim on behalf of your child, head to our guide.
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