Accident victims to get greater benefits delivered faster

13 Oct 2004

Media Release - 13 October 2004

Lump-sum no fault impairment benefits for Victorians injured in transport accidents will increase by over 200 per cent for the most severely injured, under amendments to the Transport Accident Act to be introduced into Parliament this week by the Minister responsible for the TAC, Rob Hulls.

"Lump sum impairment benefits for accident victims will be dramatically improved in the first major overhaul of benefit levels since the draconian changes to the TAC scheme introduced by the Kennett Government in the mid-1990's," Mr Hulls said.

Under the new impairment benefit model, people who have the highest level of impairment will see lump sum payments increase from $79,440 to $252,000.

Total TAC payments for lump-sum impairment benefits will rise by an estimated $16 million a year from current levels of around $20 million a year.

Mr Hulls said the lump sum increases were possible because sound financial management of the TAC scheme had been restored and was one of 37 amendments to legislation designed to improve services and care, address inequity and bring the legislation in line with current social trends to provide more generous childcare benefits. In addition to the extra amount for lump sum impairment benefits, an extra $10 million per year has been allocated for extra benefits.

In addition to the legislative changes, stress for accident victims will be eased because of an agreement reached between the TAC and legal representatives for new protocols to fast-track the delivery of benefits for those entitled to compensation, and reduce legal costs by avoiding court disputes.

Announced today by Mr Hulls, these protocols are the result of an historic agreement between the TAC and legal stakeholders acting for people injured on our roads under which both parties have agreed to pre-court meetings, greater exchange of information and incentives to resolve claims without unnecessary delays.

"The financial and emotional stress on road accident victims, their families and carers will be eased and the increases in lump sum payments will go to those who need it most," Mr Hulls said.

"This agreement will mean less matters are referred to the Courts and a more accessible, efficient and less costly outcome for people injured on our roads.

"Resolving civil disputes outside the adversarial system is central to the Bracks Government's commitment to provide access to affordable, high quality justice," said Mr Hulls.

The process will become less intimidating and not add further to the trauma already experienced by those involved in car accidents and their families, said Mr Hulls.

Endorsed by the Law Institute of Victoria (LIV) and the Australian Plaintiff Lawyers Association (APLA), Mr Hulls said the protocols are a model example of how organisations can put aside their respective interests and work together for the interests of the people of Victoria.

Features of the protocols include:

• Earlier exchange of information to assist correct decision-making and shorter time frames for the resolution of disputes;
• Pre-court meetings to avoid matters proceeding to court; and
• A system that links legal costs to early resolutions of claims, rather than the system of the past that tended to provide higher costs, for longer disputes.

Benefits of the new protocols include:

• A target of six months to resolve 80 per cent of no-fault disputes rather than the current time of 14 months for 80 per cent of cases; and
• Common Law cases that take more than six years from the date of the accident to be resolved around two years earlier.

The new protocols cover three areas including no-fault dispute resolution for matters such as loss of income, impairment benefit payments and common law claims.

The new impairment benefit model and protocols will take effect from 1st March 2005.

Media contact:

Sally Finlay 03 9651 5799