Insurers in no fault systems have no incentive to speedily process claims as they earn money whilst they retain premium income in their investment portfolio. In contrast, well case managed litigation allows increasingly quick resolutions.
The cost of road deaths in Victoria has not been reduced by the restriction on common law access, even though the numbers of common law cases are declining as this graph shows.
Chart prepared by Cumpston Sargeant Pty Ltd, Actuaries
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Conclusion
The Transport Accident Act 1986 discriminates against working drivers by prohibiting them from claiming common law benefits when they are seriously injured, even though their vehicle registration includes a premium to cover this cost.
Victorians’ need sections 37 and 38A of the Act amended so injured people can elect which scheme they seek benefits from.
In the rest of the scheme, common law access is harder than originally intended by Parliament. We should expand access up to the level originally intended by adding a second gateway for injuries that are "grave or life threatening for a period of time".
The TAC scheme is highly profitable, and not returning adequate benefits to injured people.
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