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Legislative framework
The Motor Accident Injuries Act 2017 (the Act) establishes a scheme of CTP insurance and the provision of benefits and support relating to the death of, or injury to, people injured as a consequence of motor accidents in New South Wales (NSW) on or after 1 December 2017.
Injury or death to a person as a result of a motor accident occurring before 1 December 2017 is governed by either the Motor Accidents Act 1988 or the Motor Accidents Compensation Act 1999 and the relevant Regulation and Guidelines made under the Motor Accidents Compensation Act 1999.
The objects of the Act, as described in section 1.3 are to:
- encourage early and appropriate treatment and care to achieve optimum recovery of persons from injuries sustained in motor accidents and to maximise their return to work or other activities
- provide early and ongoing financial support for persons injured in motor accidents
- continue to make third-party bodily insurance compulsory for all owners of motor vehicles registered in NSW
- keep premiums for third-party policies affordable by ensuring that profits achieved by insurers do not exceed the amount that is sufficient to underwrite the relevant risk and by limiting benefits payable for threshold injuries
- promote competition and innovation in the setting of premiums for third-party policies, and provide the Authority with a role to ensure the sustainability and affordability of the compulsory third-party insurance scheme and fair market practices
- deter fraud in connection with CTP insurance
- encourage the early resolution of motor accident claims and the quick, cost‑effective and just resolution of disputes
- ensure the collection and use of data to facilitate the effective management of the CTP insurance scheme.
The Motor Accident Injuries Regulation 2017 (the Regulation) contains provisions that supplement the operation of the Act in a number of key areas.