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After a serious car accident, the physical injuries are usually the first thing anyone notices. The psychological injury can take longer to show up, and longer still to be taken seriously.
For some people, the worst part of a transport accident is not the broken bones. It is the nightmares, the flashbacks, the inability to drive past the intersection where it happened. That is what the law calls nervous shock, and in Victoria it can be compensated under the TAC scheme. This guide explains what a nervous shock compensation claim involves, who can claim, what the TAC will cover, and how a claim is run. It is not legal advice for your specific situation. If you think you might have a claim, call us, the first conversation costs you nothing.
A nervous shock claim in Victoria is a claim for psychiatric injury or illness caused by being involved in, witnessing or hearing about a traumatic event such as a car accident — formally, for a diagnosed psychiatric injury caused by a transport accident.
It is not the same as feeling shaken, upset or rattled. Those are normal human responses to an accident, and most people experience them. A nervous shock claim needs more than that. It needs a diagnosed psychiatric condition, identified by a qualified clinician, that is causally connected to the accident.
In practice, the conditions we most often see in these claims are post-traumatic stress disorder, major depressive disorder, and clinically diagnosed anxiety disorders. Sometimes it is a combination.
If you were driving the vehicle, riding a motorbike or walking when the accident happened, and the experience left you with a diagnosed psychiatric condition, you may have a claim. The same is true for passengers and cyclists.
You do not have to have been in the vehicle. Psychological trauma after a car accident can also be the basis for a claim if you were close enough to see a serious or fatal accident happen, or to arrive at the scene before emergency services had finished their work. We see this regularly with bystanders who stopped to help and with off-duty emergency responders.
If you lost a close family member in a transport accident, or learned that they were seriously injured, the psychiatric injury you sustained as a result can also be claimable. The relationship matters here, and so does how you learned of the accident, but the door is not closed simply because you were not at the scene.
In every category, the same test applies. A diagnosed psychiatric injury, causally connected to the accident, is what makes the claim. The experience alone is not enough.
Under Victoria’s TAC scheme, three groups can usually claim for psychiatric injury caused by a transport accident.
The first is people directly involved in the accident. Drivers, passengers, pedestrians, cyclists and motorcyclists. You do not need to have been physically injured to bring a claim for psychiatric injury alone, although physical and psychiatric injuries often go together.
The second is witnesses. People who saw the accident happen or arrived at its immediate aftermath. This includes some emergency responders.
The third is close friends or family members . Where a loved one has been killed or seriously injured in a transport accident, those close to the deceased can sometimes claim for the psychiatric injury they suffered as a result. This is a more restricted category, and the law looks closely at the relationship and how the person learned of the accident.
If you are not sure whether you fit one of these categories, that is a conversation worth having early. We see clients who assumed they could not claim, and could. We also see clients who assumed they could claim, and could not. An honest answer is more useful than a guess.
Car accident compensation in Victoria for nervous shock operates across two separate but complementary pathways under the TAC scheme.
The TAC no-fault scheme. If your psychiatric injury is connected to a transport accident in Victoria, you can usually access TAC support for treatment costs, counselling and income support. This applies regardless of who caused the accident. The scheme is designed so that people injured in transport accidents get help quickly, without having to prove blame first.
A common law claim. This is a separate claim for damages. To bring a common law claim in Victoria, two things have to be true.
First, you need to satisfy one of the two statutory gateways under section 93 of the Transport Accident Act 1986. Either your level of impairment is determined at 30 percent or more, or the TAC determines that you have a “serious injury”. For psychiatric claims, the serious injury test means a severe long-term mental or severe long-term behavioural disturbance or disorder.
Second, the accident must have been caused by the negligence of another party’s negligence.
If the TAC refuses to issue a serious injury certificate, you can apply to the County Court for leave to bring a common law claim under section 93(4)(d). This is a standard pathway however is often hard-fought by the TAC.
Both the no-fault and common law pathways can apply to the same person. The claims can be investigated concurrently however generally the no-fault pathway runs first. The common law pathway sits separately and is where larger lump sum compensation can be sought.
If your nervous shock compensation claim is accepted, the TAC scheme can cover a range of expenses and entitlements.
We walk you through which entitlements apply to your circumstances when we open the file.
Broadly, three things.
A diagnosed psychiatric injury. This means a formal diagnosis from a psychiatrist or clinical psychologist, not self-described distress. The diagnosis has to meet clinical criteria.
A causal link to the accident. The psychiatric injury has to be connected to the transport accident, not pre-existing or attributable to something else. If you had a prior psychiatric condition, that does not automatically rule out a claim, but it changes how the claim is run.
For common law claims, the section 93 threshold and negligence. This is where most nervous shock claims succeed or fail. The serious injury threshold is a clinical and legal test, and we work with you to build the medical and lay evidence to meet it.
There are two stages most clients move through, and they do not always run in order.
The first stage is getting your psychiatric injury properly recognised. That could involve seeing a GP and being referred to a psychologist or psychiatrist who can assess and document the condition. It also means lodging the TAC claim form, ideally as soon as possible after injuries become apparent, and identifying psychiatric injury as part of the claim even if you have not yet been formally diagnosed. From that point, the TAC’s no-fault entitlements begin to apply, and your treatment and income support are organised through the scheme.
The second stage is the common law claim, where one is available. This is where we apply for a serious injury certificate under section 93 of the Transport Accident Act, or rely on the 30 percent impairment determination, and where the negligence of the driver or owner of the at-fault vehicle has to be established. Common law claims are run alongside your ongoing TAC support, not instead of it.
Most clients do not need to memorise the process. What we do is explain what is happening at each step, and tell you when something needs your attention. We support you every step of the way and you speak directly to your lawyer the whole way through.
For the TAC no-fault scheme, a claim form should generally be lodged within twelve months of the accident or when the injuries first become apparent.
Extensions, of up to 3 years, are available in some circumstances, upon application.
For common law claims, the standard limitation period is six years from the accident, or when the injury first manifested itself. It is possible to obtain an extension of time in certain circumstances but would require an application to the TAC and possibly to the Court.
We do not give fixed timelines for how long a claim takes to resolve. It depends on the medical evidence, the insurer’s position, and whether the matter settles or runs to a court hearing. What we can tell you is what affects the timeline, and where we are up to at any point.
A client came to us after losing a family member in a traumatic motor vehicle accident. She had tried her best to get on with her life, however the impacts of her psychiatric condition lingered.
She had not lodged a TAC claim for psychiatric injury, because she did not realise it was claimable separately. We helped her lodge a claim and assisted her with obtaining a lump sum Impairment Benefit.
We then prepared a serious injury application under section 93. The matter was resolved at a settlement conference, without needing to issue Court proceedings.
The point of the case is not the result. It is that she came to us assuming the psychiatric injury was not “real enough” for a claim. It was. Many of the clients we see have made the same assumption.
Personalised service for your case. You have direct access to the lawyer handling your claim. Every matter is treated as equal regardless of value.
We explain costs in plain English. We act on a no win, no fee basis. You pay nothing unless we win.
If you are not sure whether you have a claim, contact us — the first conversation costs you nothing. Call 1300 FEARLESS (1300 332 753) or use the form on this page.
How is car accident compensation calculated for psychiatric injury in Victoria? For TAC no-fault benefits, compensation covers reasonable treatment costs and income support based on your pre-accident earnings. An impairment benefit lump sum can also be received if your whole person impairment is assessed at 11% or more. For common law claims, damages are calculated based on pain and suffering, loss of earning capacity, and past and future treatment needs. The amount varies significantly between matters.
How long after a car accident can you claim in Victoria? TAC no-fault claim forms should generally be lodged within twelve months of the accident, this can be extended in certain circumstances for no longer than 3 years. Common law claims have a standard six-year limitation period from the date of the accident, with extensions sometimes available for psychiatric injuries that are diagnosed later. If you are outside these windows, it is still worth a conversation.
How much compensation will I get for nervous shock after a car accident? With a common law claim, damages can be claimed for pain and suffering and economic loss. There is no average figure that means anything. The amounts claimable depend on a number of factors such as the severity of the diagnosed psychiatric injury, your earnings, your work capacity, your age, your treatment needs, and whether negligence by another road user can be established. We can give you a realistic range once we have seen your evidence.
Can I claim compensation for psychological trauma after a car accident? Yes. Psychological trauma after a car accident is compensable in Victoria under the TAC scheme, provided the injury is formally diagnosed and connected to a transport accident. This applies whether you were in the vehicle, witnessed the accident, or lost a close family member. See the section above on who can claim.
How is a car accident settlement figure calculated? In Victoria, common law settlements take into account general damages for pain, suffering and loss of enjoyment of life, economic loss covering past and future earnings.
What is the average payout for a personal injury claim in Australia? Average figures are misleading because each claim is different. We do not work to averages, we work to your circumstances.
How do I claim compensation for a car accident in Victoria? The first step is lodging a TAC claim form, which can be done online through the TAC website or with our help. If you suspect a psychiatric injury, mention it on the claim form even if you have not been formally diagnosed yet. We can then guide you through the medical evidence and any common law claim that may be available.
Do I have to have been in the car to claim for nervous shock? No. Victorian law recognises nervous shock claims by witnesses to a transport accident, and in some cases by close family members of someone who was killed or seriously injured. The category and circumstances matter, so this is worth checking with us directly.
Will the TAC accept a claim for psychiatric injury only? Yes, where the psychiatric injury is properly diagnosed and connected to a transport accident. Psychiatric injury alone is a compensable injury under the Victorian scheme.
What is the “serious injury” threshold for a common law nervous shock claim? For psychiatric injury, the serious injury test under section 93 of the Transport Accident Act 1986 is a severe long-term mental or severe long-term behavioural disturbance or disorder. Either this test or a 30 percent impairment determination must be met before a common law claim can be brought.
Amy Caldow is a principal at National Compensation Lawyers, leading the firm’s TAC practice. She has run TAC psychiatric injury claims for clients across Melbourne and regional Victoria.