Compensation to Relatives: Financial Support and Dependency Claims
A Compensation to Relatives claim provides financial support to the family of a person who has died in a motor accident caused by another driver’s fault. This is separate from funeral expenses and is designed to compensate for the long-term loss of the deceased’s financial and domestic contribution to the household. General information only.
1) Who is an "Eligible Relative"?
In New South Wales, the Compensation to Relatives Act 1897 defines who can make a claim following a death. This typically includes:
- The husband, wife, or de facto partner of the deceased.
- The children (including stepchildren) of the deceased.
- The parents and siblings of the deceased.
One claim is usually brought on behalf of all eligible relatives who suffered a loss.
2) Claiming for Financial Dependency
The largest part of most claims is the loss of financial support. This is calculated by looking at:
- What the deceased person would have earned over their remaining working life.
- How much of that income was spent on the family (the "dependency" percentage).
- The loss of superannuation contributions.
This assessment requires detailed financial evidence and expert accounting reports to ensure the full loss is captured.
3) Loss of Domestic Services
If the deceased person performed significant household tasks—such as home maintenance, gardening, cooking, or childcare—the family can claim for the replacement cost of these services. This is especially critical for surviving partners who now must pay for services previously provided for free.
4) The Role of Liability and Negligence
These claims depend on proving that the other driver was at fault. If the accident was "blameless", or if the deceased was found to be contributorily negligent (partially at fault), the total compensation will be reduced by that percentage. Disputing an insurer’s fault decision is often the most critical part of a dependency claim.
5) Why you should contact us immediately
Compensation to Relatives claims are legally complex and require sensitive, expert handling. We specialize in managing these claims to ensure that families receive the maximum possible support during an incredibly difficult time. Contact us immediately to discuss your rights and the available evidence.
Frequently asked questions
- Who can claim compensation after a family member dies in a crash?
- Under the Compensation to Relatives Act 1897 (NSW), eligible relatives include a spouse or de facto partner, children, parents, and siblings. The claim is focused on those who were financially dependent on the deceased.
- What types of compensation can be claimed?
- The primary areas of compensation are for the loss of financial support (dependency) and the loss of domestic services (chores, maintenance, childcare) the deceased would have performed for the family.
- Does fault matter in a compensation to relatives claim?
- Yes. Unlike funeral expenses, these claims are based on negligence. You must be able to prove that the accident was caused by the fault of another driver. If the deceased was partially at fault, the compensation may be reduced.