In New South Wales (NSW), motor vehicle accidents can have profound legal and financial ramifications for those involved. Two significant pieces of legislation govern motor accident compensation in NSW: the Motor Accident Injuries Act 2017 and the Motor Accident Compensation Act 1999. Understanding the differences between these acts is essential for individuals seeking compensation after a motor accident.
The Motor Accident Compensation Act 1999 (MACA 1999) was the primary legislation governing motor accident compensation in NSW for nearly two decades until the introduction of the Motor Accident Injuries Act 2017 (MAIA 2017). While both acts aim to provide compensation to individuals injured in motor accidents, there are several key differences between them.
MACA 1999 governs all accidents occurring prior to 1 December 2017.
One of the most significant differences between the two acts is the compensation scheme they establish. Under the MACA 1999, a fault-based scheme was in place, meaning that compensation was awarded based on who was at fault for the accident. This often involved lengthy and complex legal proceedings to determine liability.
In contrast, the MAIA 2017 introduced an entitlement to statutory benefits regardless of who was at fault for the accident. This shift aimed to streamline the compensation process and ensure injured parties receive financial support more quickly.
Another notable difference between the two acts is that person who has suffered a “threshold injury” is not able to access common law entitlements under MAIA 2017. The MACA 1999 did not include such a preclusion. As such, individuals with minor injuries such as soft tissue injuries are subject to caps on compensation which were not present under the MACA 1999.
Additionally, the MAIA 2017 introduced the concept of the Dispute Resolution Service (DRS) and the Personal Injury Commission (PIC) to handle disputes related to motor accident claims. These bodies provide an alternative to court proceedings.
Understanding the differences between the Motor Accident Injuries Act 2017 and the Motor Accident Compensation Act 1999 is crucial for individuals navigating the motor accident compensation process in NSW. While both acts aim to provide compensation to injured parties, the MAIA 2017 introduces several key changes, including a shift to statutory benefits and thresholds for making a lump sum common law claim.