AGY-1080 | Motor Accidents Authority

Full description

Prior to 1984 third party insurance was regulated by the Motor Vehicles (Third Party Insurance) Act, 1942 ( Act No. 15 1942). Compulsory third party insurance was initially provided by a number of insurers, but by the early 1980s almost all of this type of insurance was provided by the Government Insurance Office. (GIO) The calculation of both the discount rate and damages for attendant care provided by family members were determined by judicial decisions during this period. (1)

The Motor Vehicles (Third Party Insurance) Amendment Act, 1984 (Act No. 86 1984) changed the funding arrangements for third party insurance, making the GIO the sole administrator of the third party scheme, and reforming the discount rate and damages calculations. The discount rate (which reduces lump sums for future loss) was increased to 5%, damages for attendant care provided by family members was limited to average weekly earnings, and interest on general damages was abolished. (2)

The Transport Accidents Compensation Act, 1987 (Act No.101 1987) introduced the TransCover Scheme to regulate motor accident compensation. The scheme which commenced on 1 July 1987 provided a range of benefits but retained the 'common law' requirement to demonstrate fault on the part of another road user. After a change in government in 1988 the Transcover Scheme was superseded by the Motor Accidents Act,1988 ( Act No.102 1988). This new Act took effect from 1 July 1989 but operated retrospectively to 1 July 1987. (3)

The Motor Accidents Act, 1988 (Act No.102 1988) provided for the return of compulsory third party insurance, and common law damages for personal injury suffered as a result of the fault of another driver on NSW roads. There was to be an initial 'privatisation' of third party insurance to a number of licensed insurers and the subsequent deregulation of Compulsory Third Party insurance premiums after a phasing in period of two years. The Motor Accidents Authority was established on 10 March 1989 to administer the new insurance system known as the Motor Accidents Scheme. The Attorney General's Department handled much of the Motor Accidents Authority's work during its formative months while the Roads and Traffic Authority dealt with the allocation of motorists to insurance companies. The Motor Accidents Authority is funded by a small levy on third party premiums (popularly known as 'Green Slips'). (4)

Under the Nominal Defendant Scheme the Motor Accidents Authority as Nominal Defendant is responsible for the administration of all claims arising from motor accidents on or after July 1 1989 against owners and drivers of uninsured or unidentified motor vehicles. These claims initially served on the Authority, are randomly allocated to licensed compulsory Third Party insurers who manage those claims on behalf of the Nominal Defendant.

The Motor Accidents Authority was also given responsibility to fund and monitor projects in the areas of injury management - prevention, awareness, trauma care, rehabilitation, and long term care. The Brain Injury Rehabilitation Program (from 1990) involves a joint venture with the Department of Health to establish a network of Brain Injury units throughout New South Wales. (5) Rehabilitation grants in 1992-93 concentrated on the needs of families with injured children. (6) On 27 July 1995 the Motor Accidents Authority and the Australian Paralympic Federation began a two-year Paralympian project to provide elite athletes who were injured in motor vehicle accidents with Australian Paralympic Federation scholarships. (7)

On 23 May 1997 the Motor Accidents (Amendment) Act, 1997 (Act No. 3, 1997) came into force and changed the definition of motor vehicle to include trailers and extended insurance cover for unregistered vehicle permits beyond New South Wales. The late making of accident claims was also clarified and times limitations placed on Court proceedings.

FOOTNOTES
(1) Motor Accidents Authority of New South Wales Annual Report for the year ended 30 June 1990 page 16.
(2) Ibid. page 16.
(3) Ibid. page 16.
(4) Ibid. page 7.
(5)Motor Accidents Authority of New South Wales Annual Report of the for the year ended 30 June 1992 page 9.
(6) Motor Accidents Authority of New South Wales Annual Report of the for the year ended 30 June 1993 page 17.
(7) Motor Accidents Authority of New South Wales Annual Report of the for the year ended 30 June 1996 page 6.