79ADetermination of non-economic loss—accidents occurring after midnight on 26.9.95

#### 79A Determination of non-economic loss—accidents occurring after midnight on 26.9.95 79A Determination of non-economic loss—accidents occurring after midnight on 26.9.95 > > (1) This section applies only to motor accidents that occurred after midnight on 26 September 1995. > > > (2) The object of this section is to limit the amount of damages for non-economic loss in cases of claims relating to relatively minor injuries, in order to achieve the object of the Act of more fully compensating those with more severe injuries at a cost the community can afford to meet. > > > (3) No damages are to be awarded for the non-economic loss of an injured person as a consequence of a motor accident unless the injured person’s ability to lead a normal life has been, or in the near future is likely to be, significantly impaired for a continuous period of not less than 12 months by the injury suffered in the accident. > > > (4) No damages may be awarded for non-economic loss unless the severity of the non-economic loss of the injured person is at least 15 per cent of a most extreme case. > > > (5) The maximum amount that may be awarded for non-economic loss is $235,000, but the maximum amount is to be awarded only in a most extreme case. > > > (6) If the severity of the non-economic loss is assessed to be equal to or greater than 15 per cent of a most extreme case, the damages for non-economic loss are to be determined according to the following Table: > > > > | Table | | > > | Severity of the non-economic loss (as a proportion of a most extreme case) | Damages for non-economic loss (as a proportion of the maximum amount that may be awarded for non-economic loss) | > > | 15% | 1% | > > | 16% | 1.5% | > > | 17% | 2% | > > | 18% | 2.5% | > > | 19% | 3% | > > | 20% | 3.5% | > > | 21% | 4% | > > | 22% | 4.5% | > > | 23% | 5% | > > | 24% | 5.5% | > > | 25% | 6.5% | > > | 26% | 8% | > > | 27% | 10% | > > | 28% | 14% | > > | 29% | 18% | > > | 30% | 23% | > > | 31% | 26% | > > | 32% | 30% | > > | 33% | 33% | > > | 34%–100% | 34%–100% respectively | > > > (7) An amount determined in accordance with subsection (6) is to be rounded to the nearest $500 (with the amounts of $250 and $750 being rounded up). > > Note— > > The following are the steps required in the assessment of non-economic loss in accordance with this section: > > > Step 1: Has the claimant demonstrated that his or her ability to lead a normal life has been, or in the near future is likely to be, significantly impaired for a continuous period of not less than 12 months? If not, there is no entitlement to damages for non-economic loss. If the claimant is able to satisfy this test, proceed to Step 2. > > > Step 2: Determine the severity of the claimant’s non-economic loss as a proportion of a most extreme case. The proportion should be expressed as a percentage, and may be assessed by reference to any Guidelines for the Assessment of Non-Economic Loss adopted by the regulations under this Act. > > > Step 3: Confirm the maximum amount that may be awarded under section 79A for non-economic loss in the case of a most extreme case. This amount is indexed each year under section 80. > > > Step 4: Use the Table to determine the percentage of the maximum amount payable in respect of the claim. The amount payable under section 79A for non-economic loss is then determined by multiplying the maximum amount payable in a most extreme case by the percentage set out in the Table. > > It will be noted that where the proportion of a most extreme case is greater than 33%, the amount payable will be the same proportion of the maximum amount. > > **s 79A:** Ins 1995 No 66, Sch 1 \[36\].