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Contents (2017 - 10)
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Motor Accident Injuries Act 2017 No 10
Current version for 1 February 2019 to date (accessed 23 January 2020 at 13:22)
Schedule 4
Schedule 4 Savings, transitional and other provisions
Part 1 Savings and transitional regulations
1   Regulations
(1)  The regulations may contain provisions of a savings or transitional nature consequent on the enactment of this Act or any Act that amends this Act.
(2)  Any such provision has effect despite anything to the contrary in this Schedule. The regulations may make separate savings and transitional provisions or amend this Schedule to consolidate the savings and transitional provisions.
(3)  Any such provision may, if the regulations so provide, take effect from the date of assent to the Act concerned or a later date.
(4)  To the extent to which any such provision takes effect from a date that is earlier than the date of its publication on the NSW legislation website, the provision does not operate so as:
(a)  to affect, in a manner prejudicial to any person (other than the State or an authority of the State), the rights of that person existing before the date of its publication, or
(b)  to impose liabilities on any person (other than the State or an authority of the State) in respect of anything done or omitted to be done before the date of its publication.
Part 2 Provisions consequent on enactment of this Act
2   Special provisions for premiums during transition period
(1A)  The object of this clause is to enable the Authority to ensure that the premium income and underwriting profits achieved by insurers during the transition period are not excessive or inadequate, having regard to the reduction in the cost to insurers of providing compulsory third-party insurance in relation to motor accidents as a consequence of this Act.
(1)  This clause applies to the transition period that starts on the commencement of this clause and ends on the date prescribed by the regulations.
(2)  The Authority is to review the operation of this clause at the end of 3 years after the commencement of this Act and advise the Minister on the making of a regulation to terminate the transition period.
(3)  The following special arrangements are to apply in relation to the premiums payable for third-party policies in force during the transition period:
(a)  the Motor Accident Guidelines are to make provision for the adjustment of premiums to ensure that unearned premium surplus attributable to policies in force immediately before the start of the transition period is refunded to the policy holders or is applied for the purposes of an appropriate reduction in premiums payable for policies in force during the transition period,
(aa)  the Authority may direct insurers to make payments to the Authority Fund corresponding to the costs incurred by the Authority in connection with the administration of the refund of unearned premium surplus,
(ab)  the Authority may direct insurers to make payments from any residual amount of unearned premium surplus (not otherwise paid to the Authority Fund or refunded to policy holders) to any fund or person for purposes relating to the administration of, or the promotion of the efficiency and effectiveness of, the motor accidents scheme under this Act,
(b)    (Repealed)
(c)  the Authority may determine the range of premiums that are appropriate for third-party policies issued during the transition period (transitional policies) and any such determination must be made on the basis of independent actuarial advice and taking into account the likely effect of this Act on the cost of claims,
(d)  the grounds on which the Authority may, under this Act (or the Motor Accidents Compensation Act 1999), reject premiums filed for transitional policies include that the premiums will not fall within the range of premiums determined by the Authority under this clause to be appropriate for transitional policies.
(3A)  Without limiting subclause (3) (a), the Motor Accident Guidelines may make provision for or with respect to the following matters in connection with the refund of unearned premium surplus and the reduction in premiums:
(a)  the administration by the Authority of the refund of unearned premium surplus to policy holders,
(b)  arrangements for the use of the services of any staff of Service NSW or any other person or body for the purposes of or in connection with the administration of the refund,
(d)  limiting the entitlement to refund payments to the holders of policies in respect of which the unearned premium surplus attributable to the policy exceeds (after deducting administration costs) the minimum amount of $10 (the minimum refund entitlement threshold),
(e)  the application of amounts below the minimum refund entitlement threshold for the purposes of a reduction in Authority Fund levies payable for policies issued during the transition period.
(4)  The Motor Accident Guidelines are to make provision for the adjustment of either or both of the following to avoid or minimise transitional excess profits and transitional excess losses:
(a)  premiums payable for third-party policies issued during the transition period,
(b)  Authority Fund levies payable in connection with third-party policies issued during that period.
(4A)  The Motor Accident Guidelines may include provision for the adjustment of Authority Fund levies or premiums for the purposes of this clause to take into account innovations implemented by insurers to promote the objects of this Act.
(4B)  The following special arrangements are to apply in relation to Authority Fund levies payable in connection with third-party policies issued during the transition period:
(a)  the Authority may, following any adjustment of those Fund levies to avoid or minimise transitional excess losses as provided by the Motor Accident Guidelines under this clause, direct payments from the Authority Fund to insurers corresponding to any increase in Authority Fund levies otherwise payable,
(b)  the Authority may, before any adjustment of those Fund levies to avoid or minimise transitional excess profits as provided by the Motor Accident Guidelines under this clause, direct insurers to make payments to the Authority Fund corresponding to any proposed reduction in Authority Fund levies otherwise payable,
(c)  an amount payable to or from the Authority Fund under this subclause is not recoverable from or payable to policy holders.
(5)  The Motor Accident Guidelines may make provision for the following:
(a)  determining the likely cost of claims for claims arising after the start of the transition period,
(b)  determining (or establishing a methodology for determining) the amount of unearned premium surplus, transitional excess profit and transitional excess loss,
(c)  giving effect to an adjustment of premiums or Authority Fund levies under this clause.
(6)  The Motor Accident Guidelines may provide for an adjustment under this clause to be made in relation to previous, current or future periods.
(7)  Until the commencement of this Act, the Motor Accidents Compensation Act 1999 has effect subject to this clause.
(8)  It is a condition of a licence granted under this Act (and under the Motor Accidents Compensation Act 1999) that the licensed insurer must comply with the requirements of any special arrangement under this clause.
(9)  In this clause:
Authority Fund means the Motor Accidents Operational Fund under Division 10.4 of this Act or, in respect of any period before the commencement of this Act, under Part 8.4 of the Motor Accidents Compensation Act 1999.
Authority Fund levies means Fund levies under Division 10.4 of this Act or, in respect of any period before the commencement of this Act, under Part 8.4 of the Motor Accidents Compensation Act 1999.
Motor Accident Guidelines includes (during so much of the transition period as occurs before the commencement of this Act) the Motor Accidents Premiums Determination Guidelines under the Motor Accidents Compensation Act 1999.
reasonable profit means the range of underwriting profit determined in accordance with the Motor Accident Guidelines to represent an adequate return on invested capital.
transitional excess loss means a shortfall in underwriting profit below a reasonable profit.
transitional excess profit means underwriting profit in excess of a reasonable profit.
unearned premium surplus means an increase in underwriting profit that results from a reduction in the cost of claims after the commencement of the transition period to the extent that the reduction is attributable to this Act.
3   Third-party policies—references to unregistered vehicle permits
A policy does not cease to be a third-party policy under this Act merely because the policy refers to an unregistered vehicle permit under the Road Transport (Vehicle Registration) Act 1997 instead of an unregistered vehicle permit under the Road Transport Act 2013 (as specified in the policy set out in Division 2.1).
4   Continuation of fund
(1)  The Motor Accidents Operational Fund is a continuation of the Motor Accidents Operational Fund established under the Motor Accidents Compensation Act 1999 as in force immediately before the commencement of this clause.
(2)  The Nominal Defendant’s Fund is a continuation of the Nominal Defendant’s Fund established under the Motor Accidents Compensation Act 1999 as in force immediately before the commencement of this clause.
5   References to superseded Acts
A reference to the Motor Accidents Compensation Act 1999 or the Motor Accidents Act 1988 in any Act (other than in this Act), in any instrument made under any such Act or in any document is to be read as including a reference to this Act, unless the regulations or the context otherwise requires.
6   Transitional arrangements for Fund levies under Motor Accidents (Lifetime Care and Support) Act 2006
Part 7 (Funding of the Scheme) of the Motor Accidents (Lifetime Care and Support) Act 2006 continues to apply to and in respect of a Fund levy determined for a relevant period that commences before the amendment of that Part by this Act as if that Part had not been amended by this Act.
7   Determination of premiums for taxis and hire vehicles
(1)  This clause applies in respect of Motor Accident Guidelines that:
(a)  relate to the determination of insurance premiums for third-party policies for taxis or hire vehicles (within the meaning of section 2.26 (Special provisions relating to taxis and hire vehicles and other vehicles)), and
(b)  provide for the premium, or part of the premium, to be paid on the basis of the distance travelled by the vehicles.
(2)  This clause applies only in respect of Motor Accident Guidelines issued during the period of 3 years starting on the commencement of this Act.
(3)  In determining the guidelines for insurance premiums for third-party policies for taxis and hire vehicles, the Authority is to ensure that similar insurance premiums are to be paid for taxis and hire vehicles having regard to relevant factors of comparison, such as the class of the vehicles, the distance travelled by the vehicles and the activities in which the vehicles are engaged.
(4)  However, the methodology used to determine the distance travelled may differ according to the class of vehicle.
(5)  Subclause (3) does not apply to the determination of guidelines under section 2.26 (Special provisions relating to taxis and hire vehicles and other vehicles) to the extent that the determination relates only to that part of the premium to be paid before the issue of a third-party policy.
(6)  The Motor Accident Guidelines may provide for the refund of part of the premium paid for a third-party policy after the period for which the policy is issued by reference to digital information recorded about the distance travelled by the motor vehicle.
(7)  The Motor Accident Guidelines may exclude any class of vehicles from the operation of this provision.
Part 3 Provisions consequent on enactment of Workers Compensation Legislation Amendment Act 2018
8   Definitions
In this Part:
9   Application of amendments
An amendment made to this Act by Schedule 6 to the 2018 amending Act extends to:
(a)  a motor accident occurring before the commencement of the amendment (but not before 1 December 2017), and
(b)  a claim for statutory benefits or damages made before the commencement of the amendment (but not before 1 December 2017), and
(c)  statutory benefits or damages paid or payable before the commencement of the amendment in respect of a motor accident occurring on or after 1 December 2017, and
(d)  proceedings pending before a merit reviewer, a medical assessor, a claims assessor or a court immediately before the commencement of the amendment.
Part 4 Provision consequent on enactment of Statute Law (Miscellaneous Provisions) Act (No 2) 2018
10   No-fault accidents
The amendment made to section 5.4 by the Statute Law (Miscellaneous Provisions) Act (No 2) 2018 extends to:
(a)  a motor accident occurring before the commencement of the amendment (but not before 1 December 2017), and
(b)  a claim for statutory benefits made before the commencement of the amendment (but not before 1 December 2017), and
(c)  statutory benefits paid or payable before the commencement of the amendment in respect of a motor accident occurring on or after 1 December 2017, and
(d)  proceedings pending before a merit reviewer, medical assessor or claims assessor immediately before the commencement of the amendment.