Recently we reviewed the annual results for the 2014- 2015 Motor Accident Insurance Commission’s annual report. We noted that within QLD the four big insurers generate close to $1.5 billion in insurance premiums and from that huge amount, only 750 million is paid out in claims. The total pool of motor vehicle claims in QLD totaled 6,734. An average claim therefore totaled approximately $111,375.
Each claim is different, some worth more than this average and some worth less. When clients ask us what their claim is worth, we are able to give ball park figures based on our experience. However, each claim is unique and this ball park figure can often become distorted by the evidence we discover during the claim process.
So taking that figure of $750 million which is paid out in claims, we have untangled the results to provide a further breakdown from the percentage of the claim payments into the areas of a claim to illustrate the main components of a motor vehicle claim.
Economic Loss (loss of income from work) – 48%
This area is the main focus of any claim therefore there are a lot of categories of clients that are disadvantaged in a claim despite receiving the same injury as another claimant, if they do not prepare their claim in a way that represents the loss suffered, there claim will be significantly reduced.
General Damages (pain and suffering experienced) – 11.2%
There is a real stigma in the community that they should be adequately compensated for the pain and suffering that an injured person received as a result of a motor vehicle accident. Unfortunately the 2010 Government reforms reduced the amounts of compensation that can be awarded for pain and suffering or loss of amenity of life which resulted in this damage being significantly reduced in claims.
Legal Costs (contribution to legal fees & evidence costs) – 15.6%
This figure is another result of Government reform as the threshold that needs to be reached for an injury claimant to obtain a contribution towards their legal costs continues to increase each year thereby becoming more difficult to obtain. That said, it is still being obtained however without expert in personal injury law, it would be difficult to reach the upper threshold to receive a higher settlement thereby receive the contribution.
Medical/Treatment – 10.5%
This is a payment to reimburse for medical treatment or rehabilitation or future medical costs.
Care (Medical and Gratuitous Care) – 9.1%
A lot of people do not know that they are entitled to claim gratuitous and/or paid care that is required due to a motor vehicle accident. Gratuitous care is the care provided to a person without receiving payment and can include domestic care, nursing services and general services that aim to lessen the consequences of the motor vehicle injury.
Other – 5.6%
This can cover other areas such as interest and tax.