New indexing process for PI legislation

On 1 July 2024, a new process will start for the indexation of certain monetary amounts under the Civil Liability Act 2003 (CL Act), Motor Accident Insurance Act 1994 (MAI Act) and the Personal Injuries Proceedings Act 2002 (PIP Act) including:

  • the threshold which determines whether a court can award damages for loss of consortium or loss of servitium (CL Act, section 58(1)(b));
  • caps on general damages (CL Act, section 62(2));
  • the threshold for notification by a court about a proposed award for future loss to give the parties to a proceeding a reasonable opportunity to negotiate a structured settlement (CL Act, section 64(2)); and
  • declared costs limits, lower offer limits and upper offer limits (MAI Act, section 4 and PIP Act, schedule 1).

Before 1 July 2024, these monetary amounts were indexed by the making of regulations to prescribe the amount for each new financial year. From 1 July 2024, this indexation will now be made via Ministerial notice rather than by regulation. The formula for the calculation of the indexation remains the same.

The Ministerial notices for 2024-2025 are available as follows:

Consequential amendments to the Civil Liability Regulation 2014, Motor Accident Insurance Regulation 2018 and Personal Injuries Proceedings Regulation 2014 are made by the Civil Liability and Other Legislation Amendment Regulation 2024, which also starts on 1 July 2024.

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