CIVIL LIABILITY ACT 1936 - SECT 52

CIVIL LIABILITY ACT 1936 - SECT 52

52—Damages for non-economic loss

        (1)         Damages may only be awarded for non-economic loss if—

            (a)         the injured person's ability to lead a normal life was significantly impaired by the injury for a period of at least 7 days; or

            (b)         medical expenses of at least the prescribed minimum have been reasonably incurred in connection with the injury.

        (2)         If damages are to be awarded for non-economic loss, other than in relation to personal injury arising from an MVA motor accident, they must be assessed as follows:

            (a)         the injured person's total non-economic loss is to be assigned a numerical value (the "scale value") on a scale running from 0 to 60 (the scale reflecting 60 equal gradations of non-economic loss, from a case in which the non-economic loss is not severe enough to justify any award of damages to a case in which the injured person suffers non-economic loss of the gravest conceivable kind);

            (b)         the damages for non-economic loss are to be calculated in relation to an injury arising from an accident that occurred during 2002 by multiplying the scale value by $1 710;

            (c)         the damages for non-economic loss are to be calculated in relation to an injury arising from an accident that occurred during 2003 as follows:

                  (i)         if the scale value is 10 or less—by multiplying the scale value by $1 150;

                  (ii)         if the scale value is 20 or less but more than 10—by adding to $11 500 an amount calculated by multiplying the number by which the scale value exceeds 10 by $2 300;

                  (iii)         if the scale value is 30 or less but more than 20—by adding to $34 500 an amount calculated by multiplying the number by which the scale value exceeds 20 by $3 450;

                  (iv)         if the scale value is 40 or less but more than 30—by adding to $69 000 an amount calculated by multiplying the number by which the scale value exceeds 30 by $4 600;

                  (v)         if the scale value is 50 or less but more than 40—by adding to $115 000 an amount calculated by multiplying the number by which the scale value exceeds 40 by $5 750;

                  (vi)         if the scale value is 60 or less but more than 50—by adding to $172 500 an amount calculated by multiplying the number by which the scale value exceeds 50 by $6 900;

            (d)         the damages for non-economic loss in relation to an injury arising from an accident that occurred in a subsequent calendar year are to be calculated in accordance with paragraph (c) but the amount arrived at is to be adjusted (to the nearest multiple of $10) by multiplying it by a proportion obtained by dividing the Consumer Price Index for the September quarter of the previous calendar year by the Consumer Price Index for the September quarter 2002.

Example—

Suppose that A is injured in an accident that occurred in 2003 and claims damages for personal injury. The case is one in which the criteria under which damages for non-economic loss may be awarded are satisfied. In assessing those damages, A's total non-economic loss is assigned by the court a scale value of 23. The damages for non-economic loss will, therefore, be $44 850, calculated as follows:

        (3)         Subject to subsection (4), if damages are to be awarded for non-economic loss in relation to personal injury arising from an MVA motor accident, they must be assessed as follows:

            (a)         the injured person's total non-economic loss is to be assigned a numerical value (an "injury scale value") on a scale running from 0 to 100;

            (b)         in assessing the injury scale value, the court must apply any rules prescribed by the regulations;

            (c)         the damages for non-economic loss are to be calculated as follows:

                  (i)         if the injury scale value is assessed as 31 or less but more than 10 (see subsection (4))—by adding to $2 000 (indexed) an amount calculated by multiplying the number by which the injury scale value exceeds 10 by $1 000 (indexed);

                  (ii)         if the injury scale value is assessed as 45 or less but more than 31—by adding to $23 000 (indexed) an amount calculated by multiplying the number by which the injury scale value exceeds 31 by $3 000 (indexed);

                  (iii)         if the injury scale value is assessed as 66 or less but more than 45—by adding to $65 000 (indexed) an amount calculated by multiplying the number by which the injury scale value exceeds 45 by $5 000 (indexed);

                  (iv)         if the injury scale value is assessed as 78 or less but more than 66—by adding to $170 000 (indexed) an amount calculated by multiplying the number by which the injury scale value exceeds 66 by $10 000 (indexed);

                  (v)         if the injury scale value is assessed as 79 or more—$300 000 (indexed).

        (4)         A person who suffers personal injury arising from an MVA motor accident may only be awarded damages for non-economic loss if the injury scale value that applies under subsection (3)(a) in relation to the injury exceeds 10.

        (5)         However, a court may award damages for non-economic loss in a case that would otherwise be excluded by operation of subsection (4) if satisfied—

            (a)         that the consequences of the personal injury with respect to non-economic loss are exceptional when judged by comparison with other cases involving the same injury; and

            (b)         that the application of the threshold set by that subsection would, in the circumstances of the particular case, be harsh and unjust.

        (6)         An assessment of damages for non-economic loss under subsection (5) must be based on an injury scale value that should rarely be more than 25% higher than the injury scale value that applies under subsection (3)(a) in relation to the injury.

        (7)         An amount applying under subsection (3) (and followed by the word "(indexed)") is to be adjusted on 1 July of each year, beginning on 1 July 2014, by multiplying the stated amount by a proportion obtained by dividing the Consumer Price Index for the March quarter of that year by the Consumer Price Index for the March quarter 2013 (with the amount so adjusted being calculated to the nearest multiple of $10).

        (8)         In connection with the operation of subsection (7), the amount to be applied with respect to a particular injury is the amount applying under subsection (3) at the time of occurrence of that injury.