Nervous Shock Claims – Who Is Eligible?

Nervous Shock Claims: Who Is Eligible?

Following a traumatic event, such as a motor vehicle accident, individuals may experience psychological injury known as nervous shock. 


Recognising the impact of psychological and psychiatric injuries, the legal system in New South Wales make provision for compensation claims for nervous shock under the Compulsory Third Party (CTP) insurance scheme.

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ABOUT COMPENSATION FOR NERVOUS SHOCK

Grieving is a natural and necessary process, but it can also be incredibly challenging to navigate. The emotional journey of coping with grief and loss is unique to each individual and family, and there is no right or wrong way to grieve.


The payment of lump sum compensation aims to provide individuals who have suffered nervous shock with financial support to assist with securing their future well-being.

NERVOUS SHOCK CLAIM ELIGIBILITY

To be eligible to make a claim for nervous shock, an individual must receive a diagnosis of a ‘recognisable psychiatric illness’ directly resulting from witnessing or learning about the death of a loved one in a motor vehicle accident or serious injury suffered by a loved one in a motor vehicle accident or any other type of accident involving a vehicle on the road.


Determining whether a person's response to the death of their loved one constitutes a normal grief reaction or has the potential to develop into a more severe and enduring condition can often be challenging.

Consoling each other of nervous shock

WHO CAN MAKE A CTP NERVOUS SHOCK CLAIM?

A nervous shock claim can be made by individuals who directly experience or witness a traumatic event, such as a motor vehicle accident, and subsequently suffer a recognised psychiatric injury as a result.


Further, those who are not directly involved in the accident but have a ‘close relationship’ with the primary victim can also make a nervous shock claim.

ELIGIBLE INDIVIDUALS

  • Spouses

  • De-facto partners

  • Parents

  • Siblings

  • Children

  • Step children

  • Half siblings

  • First responders such as, police officers, ambulance officers and firefighters

For individuals, family or witnesses in shock after a car accident in NSW, CTP Claim Guide and Stacks Goudkamp can help you receive compensation for your pain and suffering.

STATUTORY BENEFITS FOR NERVOUS SHOCK

If you have suffered nervous shock as a result of witnessing or learning about a traumatic event, such as a motor vehicle accident, under the current legislation in New South Wales, you may be entitled to various statutory benefits. 


These benefits aim to provide financial support and assistance to help you cope with the impact of your psychiatric condition.  Under the current legislation you may be entitled to receive benefits for:

REASONABLE AND NECESSARY TREATMENT

You may be reimbursed for the expenses related to the treatment of your psychiatric condition. This includes doctor's fees, counselling expenses, and medication costs. Additionally, if you need to travel to obtain the required treatment, the associated travel expenses can also be covered.

CARE AND ASSISTANCE

If your psychiatric condition prevents you from performing your usual tasks at home, you may require additional care and assistance. The cost of services such as nursing care, cleaning services, or gardening assistance that you need in and around your home can be covered.

CARE FOR DEPENDENTS

If your psychiatric condition affects your ability to provide the same level of care for your dependents as before the accident, you may be eligible for compensation to cover the cost of necessary care. This can include childcare expenses if you are struggling to provide the care you previously provided to your children due to your condition.

INCOME SUPPORT FOR LOST WAGES OR EARNINGS

If your psychiatric condition has resulted in your inability to work, you may be eligible for income support to compensate for the lost wages or earnings. This financial assistance can provide some relief during the period when you are unable to earn a living due to your condition.

LUMP SUM COMPENSATION FOR NERVOUS SHOCK

The amount of compensation an individual is entitled to receive will depend on the extent of their psychiatric condition and whether they are classified as "threshold" or "non-threshold" injuries under the legislation. 


If you have suffered what is defined by the legislation as a “non-threshold” injury the compensation you can be awarded for your common law lump sum damages claim are as follows:

DAMAGES FOR NON-ECONOMIC LOSS

If your whole person impairment is greater than 10% (ie. 11%) because of your psychiatric condition then you may be entitled to damages for non-economic loss or pain and suffering. 

PAST LOSS OF EARNINGS

The statutory benefits claim may not cover 100% of your lost wages. You are therefore eligible to make a claim for compensation for the difference between what you would have earned and what the insurance company has already paid you. This can include the reimbursement of any sick leave or annual leave taken due to your injuries.

FUTURE LOSS OF EARNINGS

If your ability to earn a living is impaired due to the psychiatric condition, and this impairment is expected to result in future financial losses, you may be eligible for compensation. This claim can cover any future loss of wages and loss of superannuation.

TIME LIMITS

Time limits are in place for lodging an Application for Personal Injury Benefits for a nervous shock claim. 


The Application for Personal Injury Benefits form must be submitted to the CTP insurer you hold responsible for the accident within 28 days of the date of the accident. Failure to meet this deadline may result in the CTP insurer refusing to back pay your wages from the date of the accident unless a satisfactory explanation for the delay is provided.


If you do not submit your claim within 28 days then you must make your statutory benefits claim within three months of the date of the accident.

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FREQUENTLY ASKED QUESTIONS

  • What is nervous shock?

    The legal system in New South Wales recognises the impact of psychological and psychiatric injuries of loved ones tragically killed in road accidents or catastrophically injured. If you or a loved one has experienced nervous shock as a result of witnessing or learning about a traumatic event, such as a motor vehicle accident, you may be eligible to bring a claim for compensation.


    Nervous shock refers to psychological harm experienced after witnessing or learning about the death or serious injury of a loved one in a motor vehicle accident or any other road accident involving a vehicle. 


    In New South Wales, individuals directly involved in the accident or those with a close relationship to the victim, such as spouses, de-facto partners, parents, siblings, children, stepchildren, or half-siblings, can bring a claim for nervous shock compensation.

  • What immediate support is available if i've suffered nervous shock?

    To bring a nervous shock claim, you should complete the Application for Personal Injury Benefits and have your treating doctor fill out the Certificate of Capacity and Fitness. These documents must be lodged with the CTP insurer of the vehicle at fault.


    Under the current legislation in NSW, individuals who have suffered nervous shock may be entitled to statutory benefits including:

    • Reasonable and necessary treatment expenses
    • Care and assistance for daily tasks at home
    • Care for dependents if the condition affects caregiving abilities
    • Income support for lost wages or earnings due to the psychiatric condition

  • How is lump sum compensation calculated?

    The amount of lump sum compensation depends on the extent of the psychiatric condition and whether it is classified as a "threshold" or "non-threshold" injury. 


    Each claim is unique. 


    A "non-threshold" injury, such as post-traumatic stress disorder, may qualify for damages for non-economic loss or pain and suffering, as well as compensation for past and future loss of earnings.

  • Why should I seek legal advice for a nervous shock claim?

    Navigating the complexities of a nervous shock claim can be challenging particularly when you are struggling to come to terms with the loss of a loved one or the serious injuries suffered by one of your family members. 


    Seeking legal advice from a personal injury lawyer who specialises in CTP claims can help you understand your rights, assess your eligibility for benefits, ensure you meet the time limits, and navigate the CTP claims process to receive the compensation you deserve.

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Submit the form below and we will have one of our expert CTP lawyers reach out to learn more about you and your circumstances and see if you are eligible. Start the CTP claim process now to get the compensation you deserve.

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