Compensation of $50,000 when motor vehicle crashes into family home & nervous shock

PUBLISHED 29 Apr 2013
The Claimant in this matter was a fitter machinist.

In late 2009, whilst at work, he received a telephone call from his family that a neighbouring vehicle had crashed into the family home.

The Claimant hurried home and as a result of the incident sustained nervous shock.

As this was a motor vehicle claim, it was important for the Claimant’s injuries to exceed ten per cent whole person impairment in order to be entitled to damages for pain and suffering for the injury sustained.

A psychological examination was therefore arranged.   Ultimately, as there was a dispute as to whole person impairment, the Claimant was referred to the independent body MAS for Assessment of whole person impairment.

That Assessment reported the Claimant’s injuries did not exceed the ten per cent threshold.

Despite such an assessment, the Claimant was entitled to claim the remaining heads of damages, where applicable.

Pursuant to Section 81 of the Motor Accident Compensation Act 1999 (NSW) the Insurer admitted liability. The matter would ultimately proceed to the Claims Assessment and Resolution Service (CARS) for Assessment by an Assessor.

An assessment of the value of the claim was conducted which included a component for past medical expenses, future medical expenses, past lost wages for the time the Claimant took off work, along with a “Buffer” for diminution in earning capacity on the open labour market. The Claimant did not receive or require any domestic care and assistance.

The matter was subject to negotiations, however, did not resolve.   Accordingly, the matter was submitted to CARS. Prior to being assessed by an Assessor the Respondent’s lawyers conveyed an offer of $50,000.00 all inclusive. That Offer was accepted by the Claimant and was adequate compensation for the nervous shock sustained.

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