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Nervous shock claims in NSW may provide compensation for a recognised psychiatric illness following a road accident. A claim may be available to someone who witnessed the accident or a close family member of a person killed, injured or put in danger, even if they were not physically injured themselves.
Stephen Young Lawyers assists people across Sydney and NSW with road accident compensation claims. We can assess how the accident has affected you, explain the requirements and help you understand your options.
The key questions include:
These are starting points, not a guarantee of eligibility. You do not need every document ready before seeking advice.
“Nervous shock” is a legal term used in claims involving psychiatric harm. Where a negligence claim concerns mental harm without physical injury, NSW law requires a recognised psychiatric illness. Grief, sadness or distress alone does not meet that requirement.
The law also considers whether psychiatric illness was reasonably foreseeable in the circumstances. Medical evidence and the connection between the accident and your condition are important.
For claims involving psychiatric harm arising from another person being killed, injured or put in danger, NSW law generally requires that you either:
Close family members include spouses or partners, parents, children and siblings, with certain stepfamily and parental-responsibility relationships also covered.
Being a witness or relative does not automatically establish a claim. The remaining legal requirements must also be met. A close family member may qualify without having witnessed the accident.
If you were directly involved in the collision, we can also assess your psychological injury as part of your motor accident claim.
The NSW Compulsory Third Party (CTP) scheme provides different types of support. Our CTP claims guide explains the broader claims process. Your entitlements depend on your circumstances, the accident date and the applicable legal requirements.
An eligible statutory benefits claim may provide:
Eligibility and the duration of benefits need to be assessed individually. Additional mental harm rules apply to nervous shock claims.
A separate claim for common law damages may be available where the fault and injury requirements are satisfied.
Damages can include compensation for past and future loss of earnings. Compensation for pain and suffering, also called non-economic loss, requires permanent impairment greater than 10%, as well as meeting the other eligibility requirements.
That impairment threshold applies to pain and suffering compensation. It is not a universal requirement for every type of CTP benefit or economic loss claim.
Seek advice promptly, even if you are still receiving treatment or gathering information.
For accidents covered by the current NSW CTP scheme:
Late claims may be possible, but additional requirements apply. Other deadlines can affect ongoing payments, disputes and court proceedings. The correct timetable depends on your claim and accident date.
The CTP scheme distinguishes between “threshold” and “non-threshold” injuries. This classification can affect access to ongoing benefits and damages.
A diagnosed condition such as post-traumatic stress disorder (PTSD) or depression may be a non-threshold injury. Adjustment disorder and acute stress disorder are classified as threshold injuries under the scheme.
A diagnosis alone does not establish entitlement to compensation. Evidence must also connect the condition to the accident, and the other claim requirements must be satisfied.
We can help identify the information needed for your circumstances. Useful documents may include:
You do not need to have every document ready before contacting us. An initial discussion can help clarify what is needed and which steps should take priority.
An initial discussion helps identify the issues that need attention in your claim. We can discuss:
From there, we can explain what further evidence may be needed and the possible next steps. Bring any documents you already have; you can still contact us if you are waiting for medical reports.
No Win No Fee arrangements may be available for eligible matters, subject to a written costs agreement. We explain the proposed fees, expenses and conditions so you can understand the arrangement before deciding to proceed.
Potentially. A close family member may qualify without being at the scene. Your relationship, psychiatric injury and the other legal requirements still need to be assessed.
Yes, a claim can involve psychiatric harm alone. A recognised psychiatric illness and the remaining eligibility requirements must be established; distress alone is insufficient.
Potentially, if you develop a recognised psychiatric illness and meet the relevant requirements. Bereavement alone does not establish entitlement. Seek advice about your individual circumstances.
Potentially. PTSD may be classified as a non-threshold psychiatric injury under the NSW CTP scheme. Your diagnosis, its connection to the accident and the other eligibility requirements will need to be assessed.
There is no fixed amount. Any compensation depends on the available claim, the evidence of your losses and the applicable legal limits. We can discuss what may be recoverable after reviewing your circumstances.
Keep the decision letter and contact us promptly. We can review the reasons given, explain what they mean and identify any available review or dispute process. Relevant deadlines should be checked as soon as possible.
Dealing with claim forms and insurer correspondence can feel difficult while you are coping with the effects of an accident.
Our team can help you understand the process, organise supporting evidence and respond to questions about your claim. We can assess the relevant legal requirements, explain insurer decisions and advise on available options if a dispute arises.
Stephen Young is an Accredited Specialist in Personal Injury Law. Our firm assists injured people across Sydney and NSW with personal injury and compensation matters.

If a road accident has affected your mental health, you may be unsure whether you have a claim or where to begin.
Contact Stephen Young Lawyers to discuss what happened and how it has affected you. We can explain your options and help you take the next step.
Contact our team today to discuss your situation and understand your options.
*No Win No Fee is available for eligible matters, subject to a written costs agreement.