Motor Accident Injuries Amendment Bill

The ruling Liberal government in NSW has introduced the Motor Accident Injuries Amendment Bill 2013 into parliament, which you can read by clicking here (PDF). The bill, which seeks to amend four current acts of parliament, includes a shift to a no-fault system – rather than the current scheme where fault of another party must be proven before benefits can be received – but also includes the following:

1. That insurers are liable to pay statutory benefits for wage loss and medical expenses and payment for care expenses together with payment for lump sum benefits for persons suffering permanent impairment greater than 10 per cent.
2. A common law damages threshold of 10 per cent is now introduced. In other words, it will leave motorists, motorcyclists, passengers and pedestrians without the right of any legal recourse to claim damages if their degree of permanent impairment is less than 10 per cent.
3. There is no provision for payment of legal costs in statutory claims where a claimant has a dispute with an insurer.
4. Statutory benefits for the most part will cease prior to five years after the accident unless the injured person crosses the even higher threshold of 20 per cent permanent impairment. The old system covered people for their entire working lives.
5. There is provision in the Act for children to be eligible for benefits for loss of earning capacity if they turn 18 within five years from the date of the accident.
6. No care payments will be made to family members who are left with caring for the injured claimant in their own home following the motor vehicle accident.
7. Claims for statutory benefits that are unresolved after two years will be subject to review and direction by the Claims Assessment Resolution to facilitate their finalisation.

The bill was passed in the Legislative Assembly on May 22, and was introduced into the Legislative Council (upper house) on May 23, where it also had a first reading. The Bikesales Network will keep you updated on its progress through the upper house.