Smalley v Motor Accidents Authority of New South Wales

[2012] NSWSC 1456

Supreme Court of NSW

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Catchwords

1. TRAFFIC LAW - statutory compensation in respect of motor vehicle accidents - New South Wales - where insurer is deemed to have denied liability - whether insurer permitted thereafter to admit liability for part of the claim - permissible for insurer to admit partial liability after being deemed to have denied liability
1. STATUTES - acts of parliament - interpretation - construction of s 81 of the Motor Accidents Compensation Act 1999 - whether s 81(2) permits admission of partial liability both initially (s 81(1)) and after liability has been denied (s 81(4)) - where s 6 requires the Court to prefer construction which promotes the objects of the Act

Quick Take

The Court held that s 81(4) of the Motor Accidents Compensation Act 1999 permits an insurer to make a partial admission of liability (e.g., admitting fault of the insured driver while denying liability on other grounds such as lateness of the claim) even after the insurer has been deemed to have wholly denied liability under s 81(3). Section 81(2), which contemplates partial admissions, is not confined to initial notices under s 81(1) but also applies to admissions made under s 81(4). Where an insurer admits fault but denies liability in its s 81 notice, cl 8.11.1 of the Claims Assessment Guidelines does not provide a basis for mandatory exemption from CARS under s 92(1)(a), because fault has not been denied.