What happens to a NSW CTP damages claim if the injured person dies before settlement?

Section 2 preserves causes of action generally, subject to its exclusions. The estate may continue the existing personal injury cause of action through the executor, administrator or other properly authorised representative. The insurer and any court or PIC proceeding should be notified through the proper procedure, with the death certificate and authority documents when available.

The estate cannot recover damages for the deceased person's lost earning capacity or future probable earnings for the period after death. Past loss up to death and other surviving heads require careful calculation under the CTP and survival provisions. Exemplary damages are also excluded from the estate recovery under section 2.

If the death was caused by the accident, section 2 further excludes damages for the deceased's pain and suffering, bodily or mental harm and curtailed life expectancy in the survival action, while funeral expenses may be included. Do not apply those accident-caused-death restrictions where causation of death has not been established.

The Law Reform Act says estate rights are additional to rights conferred on dependants by the Compensation to Relatives Act. A dependency claim is not simply the deceased's damages claim transferred to family members. It requires its own eligible claimant, wrongful-death basis and evidence of financial or service dependency.

A close relative or witness who develops a recognised psychiatric injury may have a separate personal injury pathway, subject to the CTP statutory definitions, causation and evidence. Grief or distress alone should not be described as automatically compensable.

Funeral expenses, dependency, estate loss and a relative's psychiatric injury should be scheduled separately. The same invoice or financial loss must not be claimed twice, and different limitation and procedural rules may apply.

Notify the insurer and any lawyer, PIC proceeding or court without making an unverified statement about the cause of death. Preserve the existing claim file, medical records, earnings schedules, offers and settlement drafts. A settlement offer not accepted before death may not resolve the changed legal position.

Obtain the death certificate and determine whether there is a will, executor or need for administration. Probate or letters of administration may be required before an estate representative can give instructions or receive funds. The precise procedural order depends on the forum and estate status.

Obtain medical evidence on the cause of death where relevant and review coronial or hospital material. Recalculate the damages to the date of death, identify separate dependency or psychiatric claims and check every applicable time period. Estate, succession, tax and Centrelink advice may also be required.