5Objects of Act

#### 5 Objects of Act 5 Objects of Act (cf s 2A MAA; Sch 1 \[1\] of Act No 132 of 1998) > > (1) The objects of this Act are as follows— > > > > > (a) to encourage early and appropriate treatment and rehabilitation to achieve optimum recovery from injuries sustained in motor accidents, and to provide appropriately for the future needs of those with ongoing disabilities, > > > > > (b) to provide compensation for compensable injuries sustained in motor accidents, and to encourage the early resolution of compensation claims, > > > > > (c) to promote competition in the setting of premiums for third-party policies, and to provide the Authority with a prudential role to ensure against market failure, > > > > > (d) to keep premiums affordable, recognising that third-party bodily insurance is compulsory for all owners of motor vehicles registered in New South Wales, > > > > > (e) to keep premiums affordable, in particular, by limiting the amount of compensation payable for non-economic loss in cases of relatively minor injuries, while preserving principles of full compensation for those with severe injuries involving ongoing impairment and disabilities, > > > > > (f) to ensure that insurers charge premiums that fully fund their anticipated liability, > > > > > (g) to deter fraud in connection with compulsory third-party insurance. > > > (2) It must be acknowledged in the application and administration of this Act— > > > > > (a) that participants in the scheme under this Act have shared and integrated roles with the overall aim of benefiting all members of the motoring public by keeping the overall costs of the scheme within reasonable bounds so as to keep premiums affordable, and > > > > > (b) that the law (both the enacted law and the common law) relating to the assessment of damages in claims made under this Act should be interpreted and applied in a way that acknowledges the clear legislative intention to restrict the level of non-economic loss compensation in cases of minor injuries, and > > > > > (c) that— > > > > > > > (i) the premium pool from which each insurer pays claims consists at any given time of a finite amount of money, and > > > > > > > (ii) insurers are obliged under this Act to charge premiums that will fully fund their anticipated liability, and > > > > > > > (iii) the preparation of fully funded premiums requires a large measure of stability and predictability regarding the likely future number and cost of claims arising under policies sold once the premium is in place, and > > > > > > > (iv) the stability and predictability referred to in subparagraph (iii) require consistent and stable application of the law, and > > > > > (d) that insurers, as receivers of public money that is compulsorily levied, should account for their profit margins, and their records should be available to the Authority to ensure that accountability.