Fast tracking compensation

The LIV has endorsed new protocols to speed the delivery of benefits for those injured in transport accidents and entitled to compensation.

New legal protocols aimed at fast-tracking compensation to transport accident victims and reducing the need to go to court will come into effect in Victoria in 2005 under an overhaul of the Transport Accident Commission’s (TAC) benefits scheme.

The changes, announced by the state government in October, will also increase the cap on lump sum payments for no-fault impairment by more than 200 per cent to $252,000.

The new Victorian Alternative Dispute Resolution Protocols were jointly developed by the TAC, the LIV and the Australian Lawyers Alliance (formerly the Australian Plaintiff Lawyers Association). They come into effect on 1 March 2005.

The new protocols cover no-fault dispute resolution, impairment benefit payments and common law claims.

The new protocols involve:

  • earlier exchange of information to assist court decision-making and shorter time frames for the resolution of disputes;
  • pre-court meetings to avoid matters proceeding to court; and
  • linking legal costs to early resolution of claims rather than a system that tended to provide higher legal costs for longer disputes.

The changes also aim to reduce costs by virtue of avoiding court disputes. However, the protocols do not restrict people’s right to go to court.

Under the new impairment benefit model, also to come into effect on 1 March 2005, compensation for people with the highest level of impairment will increase from $79,440 to $252,000.

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

More information

From the Bookshop
Resolving Conflict: A practical approach, Gregory Tillett $49.95 
Alternative Dispute Resolution, Tania Sourdin $68.

Useful web links
www.consumer.vic.gov.au/cbav/fairsite.nsf/pages/of_about_adr, information on the Consumer Affairs Victoria website.
www.liv.asn.au/public/legalinfo/adr/, LIV website public information.

Disclaimer:
The information in this newsletter is not intended to be a complete statement of the law relating to the issues raised. Accordingly, no person should rely on this information without first obtaining specific advice from Ms Eleanor Coates of our office.



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