Non-economic loss (NEL) in NSW CTP claims
Non-economic loss (NEL) is a category of damages that may be available in serious NSW CTP claims. It is separate from economic loss (lost income) and separate from statutory benefits like weekly payments and treatment expenses.
Whether NEL is available depends on the scheme rules and whether a damages pathway is open. Thresholds such as WPI greater than 10% are commonly relevant. General information only.
1) What NEL is
NEL is intended to recognise the non-financial impact of injury on a person’s life (as defined by the applicable legal framework). It is not the same as reimbursement for treatment costs and it is not weekly income support.
2) How thresholds interact with NEL
In many serious-injury matters, a damages pathway (which may include NEL) is linked to thresholds and eligibility criteria. A commonly discussed threshold is WPI greater than 10%.
Read: WPI 10% threshold.
3) Evidence issues
Evidence in damages matters typically includes medical evidence (diagnosis and impairment), work/earnings evidence, and evidence about functional impact. The evidence needed depends on the issues in dispute.
Frequently asked questions
- What is non-economic loss (NEL)?
- Non-economic loss (NEL) is a type of damages that relates to the impact of injuries on life, separate from lost income and out-of-pocket treatment expenses. Whether NEL is available depends on the applicable NSW CTP scheme rules.
- Is NEL the same as pain and suffering?
- People often use similar wording, but the legal availability and assessment of NEL depends on the scheme and thresholds. It is not automatic.
- Do I need WPI > 10% to claim NEL?
- Thresholds such as WPI greater than 10% are commonly relevant to whether a damages pathway is open. The exact rule depends on the provisions applying to your claim.
- Can I get NEL if the insurer disputes liability?
- Damages claims generally require you to establish the necessary legal elements (including liability and causation). If liability is disputed, you may need a dispute determination through the appropriate pathway.
- Should I settle without advice if NEL may be in issue?
- Because settlement can finalise rights, it is usually sensible to get advice before agreeing, especially where 10% WPI threshold damages may be available.