Motor Accident Insurance Regulation 2018

An offer of settlement made by an insurer to a claimant must, if the claimant is not represented by a lawyer, be accompanied by an explanatory statement in a form approved by the commission.

If a claimant is not an adult of full capacity, an offer or counteroffer of settlement can not be made or accepted by or for the claimant unless the court or the public trustee—

is satisfied that settlement of the claim on the terms proposed would be in the claimant’s best interests; and

approves the terms of the offer or counteroffer.

An insurer is entitled to assume that an adult claimant is of full capacity unless—

the claimant’s mental incapacity is obvious and should be apparent to the insurer; or

the claimant is subject to a protection order under the Public Trustee Act 1978; or

the court makes a declaration under subsection (4) in relation to the claimant.

On application by an interested person, the court may declare a claimant to be under the court’s protection in negotiating settlement of the claim if—

the claimant is permanently or intermittently unable to manage the claimant’s affairs or to resist undue influence because of physical or mental illness or infirmity, or the influence of drugs; or

the claimant is in need of the court’s protection for another reason.