Motor Accident Injuries (Premiums and Administration) Regulation 2019

This section applies to an amount to be AWE indexed (an AWE indexed amount) on an indexation day for the amount under the following sections of the Act:

section 139 (5) (a) (Insurer believes injuries stable but no permanent impairment);

section 167 (1) (Amount of quality of life benefits payable);

section 174 (Amount of death benefits payable);

section 181 (Funeral benefits—maximum amount payable);

section 243 (Quality of life damages—amount that may be awarded);

section 244 (2) (Quality of life damages—amount that may be awarded for children);

section 276 (1) (Costs—awards of damages over $50 000).

This section also applies to an AWE indexed amount mentioned in the following sections:

section 13C (c);

Motor Accident Injuries (ACAT Costs Orders) Regulation 2020, section 6 (3).

The AWE indexation factor for an AWE indexed amount on an indexation day is the factor worked out using the following formula and applying subsections (5) and (6):

AWE¹ means the AWE published for the period ending immediately before the indexation day.

AWE² means the AWE published for the period ending 12 months before the indexation day.

However, if, on an indexation day for an AWE indexed amount, the effect of a negative adjustment is to be offset against an increase in line with an adjustment in the AWE, the AWE indexation factor for the amount is worked out using the following formula and applying subsections (5) and (6):

AWE¹ means the AWE published for the period ending immediately before the indexation day.

AWE³ means the AWE published for the period ending 12 months before an indexation day when a negative adjustment that has not been offset first occurred.

Note The Act, s 18 sets out what happens if an amount to be AWE indexed would, if adjusted in line with a negative adjustment to the AWE, become smaller.

The AWE indexation factor for the AWE indexed amount must be—

worked out to 3 decimal places; and

if the 4th decimal place is 5 or more—rounded up.

If the AWE indexation factor worked out under subsection (3) or (4) would be less than 1, the AWE indexation factor is 1.