Allianz's bid to overturn a non-threshold injury finding has backfired, with a Review Panel reinforcing a distinction CTP insurers cannot afford to overlook.
In a decision handed down on February 10, 2026, the New South Wales Personal Injury Commission Review Panel confirmed that a lumbar spine injury caused by a 2023 rear-end collision was not a threshold injury under the Motor Accident Injuries Act 2017.
Steve Carter, a tattooist, was stationary on the M4 motorway near Greystanes in peak-hour traffic on April 6, 2023, when another vehicle struck the rear of his car. He had turned slightly at the moment of impact after spotting the approaching vehicle in his rear-view mirror. The next day, he reported neck pain and low back pain radiating into his right leg. MRI scans taken weeks later revealed degenerative spinal changes, an annular fissure at L3/4, and disc bulging at L4/5 with signs of nerve root irritation.
The classification of his injury carried significant consequences. Under the MAI Act, if a claimant's only injuries are "threshold injuries" - essentially soft tissue injuries - statutory benefits for lost earnings and treatment expenses cut off after 52 weeks and the path to damages closes entirely.
The Act defines a soft tissue injury as damage to tissue that connects, supports, or surrounds other body structures, such as muscles, tendons, ligaments, and cartilage. It carves out injuries to nerves and ruptures of tendons, ligaments, menisci, or cartilage.
Allianz Australia Insurance Ltd, which insured the at-fault driver, challenged the original Medical Assessor's finding that Carter's injury was non-threshold. It argued the assessor had not sufficiently addressed whether the accident actually caused the annular tear, given Carter's pre-existing degenerative changes. The insurer also highlighted that Carter's symptoms had completely resolved by March 2024, when he was cleared to return to full duties - only for them to resurface nearly a year later in March 2025.
The Review Panel, comprising Principal Member John Harris and Medical Assessors Drew Dixon and Mohammed Assem, was not persuaded. After conducting a fresh examination and assessment, it found the accident caused further tearing of Carter's L3/4 intervertebral disc. His pre-existing degeneration, the Panel noted, made him more susceptible to injury, not less.
Then came the line that matters most for claims teams: the resolution of symptoms in March 2024 and their recurrence in March 2025 "is not the same as a resolution of pathology."
Because the intervertebral disc is cartilaginous tissue rather than muscle, tendon, or ligament, the Panel found the tearing fell outside the soft tissue injury definition. Carter's injury was confirmed as non-threshold, preserving his access to damages and extended statutory benefits.
For CTP insurers, the lesson is practical. A claimant returning to work and receiving medical clearance does not close the book on a threshold injury dispute. And challenging an assessment on causation grounds without fresh evidence may simply produce a more thoroughly reasoned decision reaching the same result.
