No-fault insurance will slash big payouts
THE age of big-ticket medical damages claims could be drawing to a close, with the introduction of a $6.5 billion National Disability Insurance Scheme (NDIS) set to slash the payouts to victims of catastrophic accidents.
As part of the disability overhaul – recommended by the Productivity Commission last month and broadly endorsed by both sides of federal parliament – the NDIS or a separate National Injury Insurance Scheme would pick up the bill for ongoing care costs, depending on the claim.
Victims would lose their common law right to sue for future care costs – often half of a total damages settlement under the current system – though they could still sue for other damages in a negligence claim.
“If the two schemes are introduced, then plaintiffs will no longer be able to pursue common law damages for their future care costs, which we expect will bring an end to very big claims, being those above $5 million,”