On 1 December 2017 the Motor Accident Injuries Act 2017 (“MAIA”) commenced, replacing the scheme under the Motor Accidents Compensation Act 1999. It will only apply to motor accidents occurring after 1 December 2017.
The MAIA provides, in essence, a no-fault statutory scheme with a limited fault based common law damages scheme.
Whether a person has a “minor injury” under the MAIA is central to their rights in both the statutory and common law damages schemes.
A “minor injury” is defined in section 1.6 of the MAIA to be:
(1) a minor injury is any one or more of the following:
(a) a soft tissue injury,
(b) a minor psychological or psychiatric injury.
(2) A soft tissue injury is (subject to this section) an injury to tissue that connects, supports or surrounds other structures or organs of the body (such as muscles, tendons, ligaments, menisci, cartilage, fascia, fibrous tissues, fat, blood vessels and synovial membranes), but not an injury to nerves or a complete or partial rupture of tendons, ligaments, menisci or cartilage.
(3) A minor psychological or psychiatric injury is (subject to this section) a psychological or psychiatric injury that is not a recognised psychiatric illness.
Pursuant to section 1.6(4) of the MAIA, the Motor Accident Injuries Regulation 2017 (“MAIR”) may
- include or exclude a specified injury from being a soft tissue injury; or
- include or exclude a specified injury from being a minor psychological or psychiatric injury.
Regulation 4 of the MAIR has included the following:
- An injury to a spinal nerve root that manifests in neurological signs (other than radiculopathy) is included as a soft tissue injury;
- Each of the following injuries is included as a minor psychological or psychiatric injury for the purposes of the Act:
- acute stress disorder,
- adjustment disorder.
In accordance with section 4.4 of the MAIA, a “minor injury” cannot pursue a common law damages claim.
No benefits are payable to an injured person if compensation under the Worker’s Compensation Act 1987 (NSW) is payable to the injured person in respect of the injury concerned. The insurer under the Worker’s Compensation claim must have accepted liability (section 3.35(3)), albeit that no benefits are payable under this legislation until the Worker’s Compensation insurer has denied liability (Section 3.35(5)).
The Statutory Scheme includes weekly loss of income payments for:
- Weekly payments for loss of income including:
- A gradually reducing weekly payment (in periods of entitlement) for total or partial loss of earning capacity. That is, 95% of weekly payments for the first 13 weeks (Section 3.6), for weeks 14 – 78, 80% of the pre-accident weekly payments (for total loss of earning capacity) and 85% of the pre accident weekly payments (for partial loss of earning capacity) (Section 3.7).
- After week 78 post accident the weekly payment is the mathematical difference between the person’s pre-accident earning capacity and the person’s post accident earning capacity in accordance with section 3.8. The assessment of the person’s post-accident earning capacity is based on the open labour market reasonably available to the person based on the person’s fitness for work. A person’s fitness for work is to be determined by having regard to:
- the nature of the injury and the likely process of recovery,
- treatment provided and rehabilitation undertaken and the potential for further treatment and rehabilitation,
- the person’s training, skills and experience,
- the age of the person,
- any medical certificate provided by the injured person as to the person’s fitness for work (Schedule 1, section 8(3)).
- Driver’s who were “wholly or mostly” at fault and/or driver’s with a “minor injury”, their weekly benefits will cease after 26 weeks (Section 3.11);