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MOTOR ACCIDENTS ACT 1988 - SECT 2A Objects of Act

MOTOR ACCIDENTS ACT 1988 - SECT 2A

Objects of Act

2A Objects of Act

(1) The objects of this Act are:
(a) to repeal the Transport Accidents Compensation Act 1987 and thereby to abolish the scheme for compensating victims of transport accidents (TransCover) established under that Act, and
(b) to re-instate a common law based scheme under which damages can only be awarded after a finding of negligence, and
(c) by the scheme under this Act:
(i) to reduce the cost of the former common law based scheme by limiting benefits for non-economic loss in the case of relatively minor injuries, and
(ii) to introduce a stricter procedure for the making and assessment of claims for damages, and
(iii) to preserve the benefits payable to persons with more severe injuries involving on-going disability, and
(iv) to give full weight to the need to identify fraudulent claims, deter their lodgment and prosecute those responsible for them, and
(v) to encourage recovery from injury and early and effective rehabilitation, where appropriate, as a key feature of the scheme, and
(vi) to encourage the speedy, efficient and effective provision of benefits balanced by the need to investigate claims properly and the need to encourage an early return to employment.
Note : This statement of objects is based on the introduction to the outline of Option 3 in the TransCover Review, published in Motor Accidents: The Act and Background Papers by the Attorney General's Department, 1989, p 101.
(2) It must be acknowledged in the application and administration of this Act:
(a) that participants in the scheme under this Act have shared and integrated roles with the overall aim of benefiting all members of the motoring public by keeping the overall costs of the scheme within reasonable bounds so as to keep premiums affordable, and
(b) that the law (both the enacted law and the common law) relating to the assessment of damages in claims made under this Act should be interpreted and applied in a way that acknowledges the clear legislative intention to restrict the level of non-economic loss compensation in cases of minor injuries, and
(c) that:
(i) the premium pool from which each insurer pays claims consists at any given time of a finite amount of money, and
(ii) insurers are obliged under this Act to charge premiums that will fully fund their anticipated liability, and
(iii) the preparation of fully funded premiums requires a large measure of stability and predictability regarding the likely future number and cost of claims arising under policies sold once the premium is in place, and
(iv) the stability and predictability referred to in subparagraph (iii) require consistent and stable application of the law.