Psychological injuries are real injuries. They can be just as disabling as a broken bone or a spinal injury, and NSW law treats them accordingly. If a traumatic event, workplace conditions, or someone else’s negligence has caused serious psychological harm, you may have a significant compensation claim.
Psychological injury claims arise in a wide range of circumstances, from workplace trauma and motor vehicle accidents to medical negligence and public liability incidents. What they have in common is that the harm suffered is primarily psychological rather than physical, and that it has had a measurable impact on the person’s ability to work, function, and enjoy life. These claims require careful medical evidence and specialist legal handling, but they are increasingly recognised and successfully pursued in NSW.
Who Can Claim
You may be eligible to make a psychological injury claim if you have suffered a significant psychological condition as a result of:
A traumatic motor vehicle accident, including as a driver, passenger, or bystander
A serious workplace incident or prolonged exposure to harmful workplace conditions
Medical negligence or a traumatic medical experience
A violent or threatening incident in a public place
Witnessing a serious accident or fatality in the course of your work or otherwise
Prolonged bullying, harassment, or discrimination in a workplace setting
The death or serious injury of a close family member caused by another party’s negligence
Both acute conditions such as PTSD and anxiety disorders, and conditions that develop gradually over time, are recognised under NSW law.
How a Claim Works in NSW
The pathway for a psychological injury claim depends on how the injury arose. Claims may be pursued through the NSW workers compensation scheme, the CTP scheme for motor vehicle accidents, or as common law claims for negligence, depending on the circumstances.
Seek treatment from a GP and obtain referrals to a psychologist or psychiatrist as appropriate. Contemporaneous medical records are essential to a successful claim.
Notify the relevant party of your injury, whether your employer, the at-fault driver’s insurer, or the responsible party in a public liability context.
Obtain a formal diagnosis and supporting reports from treating and, where necessary, independent medical specialists.
Lodge your claim through the appropriate pathway and scheme.
Pursue weekly benefits, treatment expenses, and lump sum compensation where your condition meets the relevant threshold.
Why You Might Want a Specialist Lawyer
Psychological injury claims face a higher level of scrutiny and disputation than most other categories of personal injury claim. Insurers frequently challenge the diagnosis, the severity of the condition, its causal connection to the relevant event or circumstances, and whether it meets the threshold for lump sum compensation. We help you:
Ensure your claim is supported by thorough and strategically prepared psychiatric and psychological evidence
Establish the causal connection between your condition and the relevant event or circumstances
Challenge insurer decisions that minimise or deny your entitlements
Pursue lump sum compensation where your condition meets the relevant permanent impairment threshold
What Compensation Could You Receive?
Depending on the nature and severity of your condition and the circumstances in which it arose, you may be entitled to:
Weekly income support while your capacity to work is affected
Psychology, psychiatry, and other treatment expenses
Rehabilitation and return to work support
Lump sum compensation for permanent psychological impairment where the relevant threshold is met
Common law damages for pain, suffering, and future economic loss where negligence is established
FAQ
I have been diagnosed with PTSD following a car accident but my physical injuries were relatively minor. Can I still make a significant claim?
Yes. The CTP scheme covers psychological injuries arising from motor vehicle accidents, and the severity of your psychological condition is assessed independently of your physical injuries. A serious PTSD diagnosis can support a significant claim regardless of the extent of physical harm.
My psychological condition has affected my relationship and my family life, not just my ability to work. Is that taken into account?
Yes. Compensation for pain and suffering and loss of enjoyment of life takes into account the broader impact of your condition on your daily life, relationships, and activities, not just your employment. We ensure the full picture is presented in your claim.
I am concerned about the stigma of a psychological injury claim. Will my employer or colleagues find out?
Your medical information is confidential and is not disclosed beyond what is necessary for the claims process. We handle all communication with insurers and other parties on your behalf, and we can advise you on how to manage the process in a way that protects your privacy as far as possible.
