Nervous Shock Claims: Compensation for Psychiatric Injury
A nervous shock claim is a specific type of NSW CTP claim for a recognized psychiatric injury. This pathway is available not only to those involved in an accident but also to family members or witnesses who have suffered psychological trauma. General information only.
1) What is Nervous Shock?
Under NSW law, "nervous shock" refers to a psychiatric injury caused by the negligence of another driver. It is most commonly claimed when someone suffers trauma after witnessing a horrific accident or learning about the death or serious injury of a close relative.
2) Who can claim for Nervous Shock?
Eligibility is governed by the Civil Liability Act 2002 and the Motor Accident Injuries Act 2017. Generally, you can claim if you:
- Were a "primary victim" involved in the accident.
- Witnessed the accident at the scene.
- Are a close family member of a person killed or seriously injured (spouse, parent, child, or sibling).
3) The "Recognised Psychiatric Illness" Threshold
You cannot claim for "normal" grief, sadness, or shock. To be eligible for CTP benefits and damages, your condition must be a recognised psychiatric illness diagnosed by a psychiatrist or senior psychologist. This includes conditions like PTSD, Major Depressive Disorder, or Chronic Anxiety.
4) Damages for Nervous Shock
If your psychiatric injury is significant, you may be eligible for common law damages. This depends on your Whole Person Impairment (WPI) score. For a nervous shock claim to unlock "pain and suffering" compensation, the WPI must be greater than 10%.
5) Why you should contact us immediately
Insurers often deny nervous shock claims by arguing the injury is a "threshold injury" (minor) or that the claimant doesn't meet the strict "close relative" or "witness" definitions. Contact us immediately to discuss your situation; we specialize in psychological injury claims and can ensure your trauma is properly assessed.
Frequently asked questions
- What is a nervous shock claim in NSW?
- Nervous shock is a legal term for a psychiatric injury suffered by a person as a result of a motor accident. It can be claimed by primary victims (those in the crash) and secondary victims (certain relatives or witnesses).
- Do I need a physical injury to claim for nervous shock?
- No. You can make a CTP claim for a psychiatric injury even if you were not physically injured, provided you meet the specific eligibility criteria for "nervous shock" under the Act.
- What is a "recognised psychiatric illness"?
- To succeed in a nervous shock claim, you must have a formal diagnosis of a recognized psychiatric condition (such as PTSD or Major Depression) from a qualified specialist. Standard grief or stress is generally not sufficient.