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ARTICLE · 06 AUGUST 2025

Review panel finds rotator cuff tear sustained during treatment is a non-threshold injury

A treatment-related rotator cuff tear was ruled a non-threshold injury linked to a motor accident, as it wasn't caused by gross negligence.

AustraliaLitigation, Mediation & Arbitration

In Brief

  • At Common Law, injury sustained during the application of reasonable and necessary treatment may have been caused by the motor accident unless the application of the treatment is grossly negligent.
  • A rotator cuff tear sustained during treatment for a frozen shoulder was, therefore, found to be a non-threshold injury.
  • The Court of Appeal has previously doubted, however, whether consequential surgery can transform a threshold injury into a non-threshold injury – see Mandoukos v Allianz Australia Insurance Limited [2024] NSWCA 71.

Facts

The PIC published its decision in Gibbin v AAI Ltd t/as GIO [2025] NSWPICMP 523 on 1 August 2025.

The Claimant was injured in a motor accident on 21 March 2019 when the vehicle she was driving was struck from behind at 80 kph.

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