Threshold Levels Affect Claims for Damages in South Australia
Working out the amount of damages you may be entitled to if you’re injured in a motor vehicle accident varies between Australia’s states and territories.
Since legislative changes were made in 2013, in South Australia injuries sustained in a car accident are measured against an Injury Scale Value (‘ISV’). The injury is given a numerical value that helps determine the amount of damages that will potentially be paid to an injured person. The ISV determines what type of compensation can be claimed.
In essence, a person’s injury must exceed a certain ISV threshold level in order for the person to be eligible for a compensation payout.
This post will explain more about how these ISV threshold levels are used to assess damages in South Australia.
How does the ISV process work?
Motor vehicle accident injuries sustained after July 1, 2013, are subject to the assessment under the ISV tables. In order to claim damages after an accident, a person must be able to show that their injury was caused by another road user’s negligence. If it can be proved someone else was at fault for the accident, then a compensation claim can be made for:
- loss of income;
- pain and suffering;
- loss of amenities of life;
- loss of expectation of life;
- disfigurement; and
- medical expenses.
The injury scale lists recognised injuries and the range in value that can be assigned to each injury.
To be eligible to apply for compensation for future economic loss – your ability to earn in income in the future – a person’s injuries must exceed 7 points (i.e. be 8 points or more) on the ISV.
If a person is awarded compensation for future economic loss, in South Australia that amount is automatically reduced by 20 per cent. An additional 20 per cent of the amount may also be deducted if a person contributed to the severity of their injuries (by not wearing a seatbelt, for example).
Under the Civil Liability Act 1936, the current maximum amount that can be awarded for economic loss in South Australia is $3,540,070.
Eligibility to claim for non-economic loss – pain and suffering, loss of amenities of life and expectation of life, and disfigurement – is an even higher hurdle to navigate. Compensation for this form of loss requires meeting an ISV threshold of more than 10 points (11 or higher) on the scale.
The same ISV threshold applies to those who seek compensation for the provision of gratuitous services as a result of their injuries, such as personal care and domestic help, and only if the service is provided for at least six hours a week for at least six consecutive months. The care must also be provided voluntarily by a parent, spouse, domestic partner or child, or if paid, not exceed an hourly rate of $28.70 (in 2021-22).
Payments are available for medical and related expenses in the period before a person’s ISV is determined.
What happens if a person suffers multiple injuries?
In many road accidents, a person can sustain multiple injuries. In this situation, it is the ISV of the main or dominant injury that must exceed the threshold for the person to be eligible for compensation. It is not necessarily the case that different injuries can be considered cumulatively in order to reach the threshold.
In some accidents, a person’s pre-existing condition is aggravated by the car accident. In these cases, the compensation amount will only reflect the degree to which the condition was exacerbated by the accident.
When is the ISV allocated to an injured person?
A CTP insurer will generally arrange an ISV medical assessment once the injury sustained in the accident is medically stable.
The injured person, or their compensation lawyers, can also request the insurer arrange an ISV medical assessment once liability for the accident has been determined but a settlement with the insurer has not yet been reached.
Not all cases will require an ISV medical assessment. The purpose of such an assessment, which is conducted by an accredited medical practitioner and encompasses medical evidence and how the injured person has been impacted by the injury, is to assign an item number to the injury or injuries. The resulting ISV report is used by the insurer to determine the form of compensation that can be claimed.
The value of speaking with experienced compensation specialists
The process described above can be intimidating, stressful, and confusing for a person recovering from the effects of a motor vehicle accident. Navigating the ISV process can be daunting to take on for an individual.
Speaking with legal practitioners who specialize in compensation matters day in and day out can help relieve the burden of understanding the ISV thresholds and making a compensation claim.
Call the Adelaide compensation lawyer today At Gajic Lawyers, our specialty is compensation claims.
