Is there a time limit on car insurance claims in Australia?

Getting into a car accident is a scary and sometimes traumatic experience for those involved.

Beyond making sure the affected drivers and passengers are okay, organising an insurance claim could be the last thing on anyone’s mind following a serious crash.

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So what do insurers have to say when it comes to the appropriate timeline for submitting a claim? How long can you wait to submit a claim before your right to claim expires?

To find out how much time drivers have before their insurance claim is voided, Drive spoke to a few insurance companies and regulators to find out.

Generally speaking, there is no time limit on car insurance claims in Australia, but taking your time can make the claiming process more complicated.

"[The] time limit differs depending on the type of insurance the driver is covered by … unless specifically stated, there is typically no time limit for making a claim on a comprehensive motor policy,” a Suncorp Group spokesperson told Drive.

However, the spokesperson said “With time, there may be changes to an at-fault driver’s circumstances and contact details, memories fade and could impact recollection of key facts, and evidence for a claim can either be lost or be harder to collate".

An Allianz Insurance spokesperson concurred, telling Drive while there's no strict time limit on claims, delays can create issues.

Allianz policyholders are "encouraged to lodge a claim as soon as reasonably possible ... claimants are required to reasonably assist with their claims by seeking and/or providing information in support of their claim," the spokesperson said.

"This can be more difficult the longer the period between when the claimed damage occurred and when the claim is lodged ... without assistance an insurer may be able to reduce or refuse to pay a claim," they added.

However, while there's no official timeframe on comprehensive insurance claims, it's a different story for compulsory third-party (CTP) insurance claims.

CTP insurance covers medical treatment, personal care and/or support in the event of injuries or death in a motor vehicle accident and has different requirements that vary by state and territory guidelines.

“All insurers that provide CTP cover must meet the requirements and timeframes outlined by that state or territory’s regulator,” the Suncorp spokesperson told Drive.

While insurance companies could have their own CTP policy that may be separate from state regulations, in Victoria the Transport Accident Charge (TAC) included in the registration fees covers injury or death in a car accident and has a 12-month claim limit from the date of the accident or the date of injury.

According to the State Insurance Regulatory Authority (SIRA), a claimant in NSW has three months from the time of the crash – or 28 days if they want to claim back pay from the day of the accident – to submit a claim.

SIRA states a person can claim up to a year’s worth of benefits which can cover “reasonable and necessary medical and treatment expenses”, an unspecified percentage of weekly wage pre-accident should the claimant need time off work, and “paid domestic and personal care” during recovery.

Queensland’s CTP insurance regulator, the Motor Accident Insurance Commission (MAIC) states on its website that claimants have nine months after the crash or “the first appearance of symptoms of the injury”.

MAIC said any claims outside of the nine-month timeframe could be rejected and different time limits apply for people under 18 years old.

 CTP compensation in Queensland varies on an individual basis, but could be reduced if the applicant is found to be partially at fault.

In South Australia, “There is no specific length of time that a CTP claim stays open. Generally, the insurer will start to finalise and settle somebody’s CTP claim once the person’s injuries are medically stable,” a CTP Insurance Regulator South Australia spokesperson told Drive.

“Ideally claims should be lodged within six months of the accident … if it has been more than six months but less than three years, the insurer will likely ask why there has been a delay,” they added.

According to Western Australia’s Limitation Act 2005, any claims or “action for damages for personal injury” are not eligible if three years have passed starting from “the date the person is aware of the injury”.

The Insurance Commission of Western Australia states on its website that claimants may “lose [their] right to claim compensation” if legal proceedings do not occur within the three-year limit.

In the Australian Capital Territory, residents involved in a car accident can file for early payment benefits for treatment and medical expenses up to $5000.

The Motor Accident Notification Form must be submitted within 30 days of the accident, and the “benefits are available for most people without having to prove someone else was at fault”.

Those with more severe injuries that require more than six months of recovery time, as well as those with medical expenses above $5000, will need to submit a Notice of Claim (NOC) form with their CTP insurer.

The ACT Government states claimants have nine months to submit their NOC document to their insurance company from the day of the car accident or the time injury symptoms first appear.

In Tasmania, residents have up to 12 months to apply for compensation and benefits following a car accident.

According to the Motor Accidents Insurance Board application form, any at-fault driver must also complete an additional Notice of Accident Form.

MAIB's personal injury claims can cover things like ambulance and hospital fees, earnings lost due to the recovery period, household duties assistance, and daily care depending on the severity of the injury sustained post-car accident.

"The Motor Accident Commission legislation must be submitted within three years from the date of the accident to be considered," an NT Motor Accidents Compensation Commission spokesperson told Drive.

"Any claims more than three years after the accident will be denied," they added.