FAQs

The term “transport accident” is defined in the Transport Accident Act 1986 (“the Act”) – the legislation that governs the operation of the Transport Accident Scheme in Victoria.  A Victorian transport accident is defined as an “incident directly caused by the driving of a motor car or motor vehicle, a railway train or a tram”.

The Transport Accident Commission (TAC) is the Victorian Government-owned agency that was set up to administer the transport accident scheme. The Transport Accident Act 1986 established the TAC.  The Act also governs the operations of the TAC and the administration of TAC claims. Under the Act, the TAC is required to pay no-fault compensation to those injured in transport accidents, to provide rehabilitation for those injured in transport accidents and to try to reduce the road toll by promoting road safety.  The TAC is also the monopoly compulsory third party insurer of all Victorian registered motor vehicles. As such, the TAC pays common law damages to accident victims who have sustained serious injury. The TAC office is located at 60 Brougham Street Geelong. Its postal address is PO Box 742, Geelong 3220. The TAC runs an enquiry call centre – 1300 654 329 or STD toll free – 1800 332 556. The facsimile number is (03) 9656 6650. The TAC website is www.tac.vic.gov.au

A person who is injured as a result of a transport accident is entitled to no fault benefits under the transport accident scheme if: • the accident occurred in Victoria; or • the accident occurred outside Victoria (but in Australia) and involved a Victorian registered motor vehicle and at the time of the accident the injured person was: • a Victorian resident; or • the driver of or a passenger in, the Victorian registered vehicle. A person who was dependant on another person who dies as the result of a transport accident is also eligible for benefits.

You can lodge a claim by ringing the TAC call centre on 1300 654 329 or toll free on 1800 332 556.

Yes.  A range of medical and like expenses are paid by the TAC.   A medical excess previously applied.  The medical excess of $ 651.00 has now been removed.  The excess no longer applies for accidents occurring on or after 14 February 2018. TAC medical coverage is very broad.  Ambulance and hospital expenses are covered by TAC.  Radiology and pathology are funded.  Consultations with General Practitioners and other medical specialists are also covered.  Additionally, there is coverage for physical therapies eg., physiotherapy, chiropractic, hydrotherapy and osteopathy.  Massage is also covered in limited circumstances.  Gym memberships can be covered.  This occurs when specific rehabilitation or exercise programs are recommended by registered practitioners or allied health professionals. TAC will fund psychological and psychiatric treatment.  Counselling can also be paid in some circumstances.  Certain aids and equipment may be funded on the recommendations of medical practitioners or occupational therapists.  Home help, domestic services and childcare are all potentially funded.

TAC has a legal obligation to fund reasonable accident-related hospital, medical and like expenses indefinitely. The payment of a lump sum impairment benefit or common law damages does not bring this entitlement to an end. However, if TAC considers that medical treatment is unrelated to injuries a claimant may have sustained in the accident, it can refuse to fund such treatment.  Likewise, if TAC considers that a particular medical treatment is unreasonable, it can refuse to pay for it.

The TAC can pay income benefits to accident victims.  Income support can continue for three years after an accident. Loss of Earnings (LOE) An “earner” will be eligible to income benefits if they cannot work due to their injuries.    Loss of earnings (LOE) benefits are paid in the first 18 months.  LOE benefits are calculated at 80% of pre-accident earnings less tax.  Currently, the maximum payable for LOE is $1,620.00 per week.  Such benefits can continue for 18 months from the date of the accident. Income support is not paid for the first 5 working days off work.  A partial LOE benefits can be paid to a claimant who cannot return to full time employment but can work part time. Loss of Earning Capacity (LOEC) Income benefits are still paid if a claimant remains incapacitated at the 18-month anniversary.  However, the nature of the entitlement alters.  In the second 18 months the entitlement is to loss of earning capacity (LOEC) benefits.  LOEC benefits are different to LOE benefits. The maximum payable for LOEC is $ 1,410.00 per week.  These benefits can be paid for a further 18 months.   Many accident victims will receive income support for a total of 3 years.  Sometimes an accident victim will receive income benefits past the three years.  A claimant whose permanent impairment is determined at 50% or more, is entitled to receive LOEC benefits until retirement age.   But this entitlement is subject to some conditions.

LOE benefits cease 18 months after the accident. LOEC benefits cease 3 years after the accident except in cases where the accident victim’s level of permanent impairment is determined by TAC at 50% or more, in which case the entitlement ceases upon the accident victim reaching normal retirement age subject to some conditions. In a practical sense, LOE and LOEC benefits will also cease if you stop sending TAC medical certificates which evidence an incapacity for work. They can also be terminated by TAC in circumstances where TAC is of the view that your injuries no longer incapacitate you for work.

Yes. The TAC can pay a no fault lump sum benefit called an “impairment benefit”.  There are eligibility requirements to receive a lump sum impairment benefit.  TAC can also pay lump sum common law damages to seriously injured transport accident victims.  It does so as the Compulsory Third Party Insurer of all Victorian registered motor vehicles.

An impairment benefit refers to a lump sum payment.  It compensates a claimant for their injuries.  To receive an impairment payment, impairment must exceed 10%.  Impairment is expressed as a percentage of the whole body.  The percentages are calculated using the Guides to the Evaluation of Permanent Impairment – 4th Edition. The final impairment percentage is calculated by TAC.  The calculation follows examinations by medical specialists.  These specialists must be accredited to the use of the impairment guides.  Impairment is different from disability.  The Guides do not assess disability, only impairment.  The Guides are said to be scientific.  However, differing outcomes are common.  Qualified medical specialists can assess different impairment outcomes.  Therefore, you should obtain expert legal advice concerning impairment.

Accidents occurring on or after 16 December 2004 Accident victims injured in transport accidents occurring on or after 16 December 2004 are entitled to a considerably higher level of benefits. The benefit payable for an 11% impairment is $9,350.00 and it increases by $1,730.00 for each impairment point up to 19%. A 20% impairment produces a lump sum of $25,420.00 and each additional point up to 49% is worth $2,540.00. The maximum that can be paid for accidents occurring after on or after 16 December 2004 is currently $427,160.00. Click here to view a table containing the lump sum amounts for accidents after 16 December 2004  Accidents before 16 December 2004 In the case of accident victims injured in transport accidents occurring before 16 December 2004, the impairment benefit is worth approximately $1,496.22 for each impairment percentage point over 10.  No impairment benefit is payable for the first 10 impairment points. Accordingly, an impairment score of 20% would produce an impairment benefit of approximately $14,962.22.  The maximum that can be paid for accidents occurring before 16 December 2004 is currently $134,660.00. Click here to view a table containing the lump sum amounts for accidents before 16 December 2004  

It used to be paid at the 18 month anniversary of the accident. However, due to an amendment to the Transport Accident Act, interim impairment benefits can now be paid to accident victims at any time commencing 3 months after the accident. Provided an injury is stable, TAC can assess and determine the impairment applicable to that injury and pay a benefit. In the case of children, (i.e. victims under the age of 18 years), the final impairment determination is made at 18 years of age.

When TAC makes a decision concerning an entitlement to any no fault benefit, if you are unhappy about the decision, you have a period of 12 months within which to challenge that decision by means of an appeal to the Victorian Civil and Administrative Tribunal (VCAT). The 12 month period commences when you are notified of the decision, that is, on the day that you become aware of the decision. Accident victims who are represented by a lawyer must engage in a no fault dispute resolution protocol which requires a comprehensive exchange of information concerning the disputed decision, leading up to a dispute resolution conference, before you can proceed to the formal VCAT appeal process.

If you are injured in an accident that occurs in the course of your employment, other than when you are travelling to or from work, you are not entitled to receive TAC benefits. In these circumstances, you are entitled to receive benefits under the WorkCover Scheme. For further information regarding WorkCover claims we recommend obtaining legal advice from expert WorkCover lawyers.

If you were the driver of a vehicle owned by you which is unregistered and you are injured in a transport accident, you would be ineligible to receive income/LOE benefits for the first 18 months after the accident. You would otherwise be entitled to receive all other no fault benefits.

If you were the driver and suffered injuries in the accident your entitlement to receive income/LOE benefits in the first 18 months will be reduced by 1/3 if your blood alcohol level was more than .05% but less that .12%. There will be a 2/3 reduction if the reading was .12% or more but less than .24%. No benefit is payable if the blood alcohol reading was .24% or more. If the alcohol played no role in causing the accident, then these reductions do not apply. The reductions only apply to drinking drivers. They do not apply to passengers or pedestrians.

The driver of a vehicle involved in a transport accident who at the time of the accident was unlicensed or their licence was suspended, is not entitled to income/LOE benefits in the first 18 months after the accident. Otherwise, the person is entitled to all of the other no fault benefits.

The TAC Scheme is essentially a “no fault” scheme. Accordingly, even if the accident was your own fault you may still be entitled to no fault benefits. You would not be entitled to pursue a common law claim or recover common law damages unless you could prove that someone else was at fault.

No. Overseas residents can make a TAC claim if the transport accident in which they were injured occurs in Victoria.  TAC will be liable to cover any medical or treatment expenses incurred within Australia however, TAC is not liable to pay any hospital, medical or like expenses incurred outside Australia. TAC also has a liability to pay income benefits, LOE and LOEC benefits, to an accident victim who resides outside Australia. Similarly, TAC has an obligation to pay the impairment lump sum benefit to a person who resides outside Australia. Accident victims who reside overseas can still bring a common law damages claim if they suffer a serious injury and can prove that the injuries resulted from the negligence or carelessness of another person. In such a common law claim, the accident victim can recover damages for medical costs incurred outside Australia and also an allowance for future medical costs that will be incurred outside Australia. It is very important for non-Australian residents, injured in transport accidents in Australia to seek expert legal advice concerning their rights. It is possible for such accident victims to inadvertently lose their rights under the Transport Accident Scheme. Expert legal advice must be obtained and we have extensive experience acting for overseas residents injured in Victorian transport accidents who have TAC claims.

Yes.  A dependant of a person who dies as a result of a transport accident can receive a lump sum payment.  They may also receive a weekly benefit.  The weekly benefit is payable for a period of 5 years.  However, it can also continue until the youngest dependant child completes full time education. The maximum weekly benefit payable is currently $ 1,620.00. The maximum lump sum death benefit is currently $224,370.00. Dependant children also have an entitlement to an education allowance. Family members are entitled to grief counselling paid by the TAC.  Expert legal advice should be obtained concerning death benefits.

Any dependant children of the deceased and the dependant spouse of the deceased. The surviving spouse of the deceased is also eligible in circumstances where the deceased wasn’t working but was engaged in the full time care of children of the deceased. Again, expert legal advice needs to be obtained about these matters.

Anyone who suffers a “serious injury” in a transport accident can sue the person whose negligence caused the accident in order to recover TAC common law damages.

There are two types of damages that can be recovered in a TAC common law claim: Pain and suffering damages up to a maximum of $ 663,580.00.   Pecuniary (economic) loss damages up to a maximum of $ 1,493,170.00.   In most cases, damages for future hospital, medical and like expenses cannot be claimed.  This is because the TAC continues to pay hospital, medical and like expenses indefinitely.  In rare cases, it is possible to obtain an award of damages for future medical costs.   See – Do I have to live in Australia to be covered by TAC?  You should obtain expert legal advice in relation to the question of TAC common law damages.

Pain and Suffering Damages Pain and suffering damages are awarded for pain, suffering and the loss of enjoyment of life.  No scale applies to the assessment of these damages. The personal circumstances of the claimant form the basis for the assessment. Accordingly, every case is different. Pecuniary Loss Damages Pecuniary loss damages are awarded for income loss and reduced earning capacity.  Income loss is only able to be claimed from the 18-month anniversary of the accident.  A claimant is entitled to recover the nett (after-tax) income that would have been earned during the relevant period. Lost earning capacity damages compensate for losses into the future.  The difference between pre-and post-accident earning capacity determines the value. The calculation of future losses involves an actuarial formula.  The formula allows for future losses to be claimed as a lump sum in the present.  The lump sum must be discounted for the normal risks of life (“vicissitudes”).  The usual discount is 15%.  Vicissitudes are usual risks of living and changes of circumstances faced by everyone.  For example, other accidents or injuries, illnesses, job losses, etc. Again, you should obtain expert legal advice in relation to both pain and suffering and pecuniary loss damages.

The damages are ordered to be paid by the defendant – i.e. the person you sue. However, in the vast majority of cases the person you sue is the driver or owner of a motor vehicle. In such cases the Compulsory Third Party Insurer is the body that pays the damages on behalf of the named defendant.  In most TAC common law claims, the TAC itself is the organisation that pays the common law damages. All Victorian motorists who pay registration fees on their car effectively pay an insurance premium to the TAC.  A component of the vehicle registration fee is paid into the TAC fund and all payments are used to fund the Transport Accident Scheme.  As such, TAC becomes liable to pay an injured transport accident victim their relevant entitlements out of the fund and on behalf of any owner or driver of a Victorian registered motor vehicle who has paid their registration fees.

Before being able to sue for damages you must be classified as having suffered a serious injury. Before you can be classified as having suffered a serious injury, you must have undergone an impairment assessment. An impairment determination will not be made until your injuries are stable or at least substantially stable. Hence, you cannot commence a common law damages claim until your injuries are stable and you have undergone an impairment assessment and have been classified as having suffered a serious injury. In some cases, such as in cases involving catastrophic spinal cord injuries or amputations, it is possible to have the impairment determined and the serious injury classification made within a few months of the transport accident. In other cases, where the injuries require a lot of ongoing treatment, it might take a year or more for the injuries to become stable.  Every TAC claim is unique and the injuries suffered by TAC claimants varying significantly.  Therefore, it is essential that you seek expert legal advice about your claim, your injuries and the potential time frames for entitlements.

Yes. The TAC is obliged to continue paying for your reasonable, accident related hospital, medical and like expenses as part of your TAC claim. The resolution of a common law damages claim brings to an end the entitlement to receive LOEC benefits. It also brings to an end any entitlement to receive an impairment lump sum payment. Expert legal advice should be obtained concerning these matters.

If you have received Centrelink benefits between the date of the accident and the resolution of your common law claim, and you recover pecuniary loss damages, (i.e. damages for lost income and impaired earning capacity) you will have to repay the amounts you have received from Centrelink. Further, depending upon the size of your damages award, you may also be ineligible to receive Centrelink benefits for a period of time in the future. Because of this, it is vitally important that recipients of TAC common law damages obtain independent, expert investment advice after resolution of the damages claim.

Yes. The time limits are: To lodge a TAC claim for compensation – 1 year from the date of the accident or from the date the injury first manifested itself. TAC does have a discretion to accept a claim lodged after 12 months, but within 3 years of the accident, provided the accident victim can provide reasonable grounds for late lodgement. No fault benefit decisions made by TAC – there is a 12 month period within which the accident victim can challenge the decision by means of lodgement of an appeal with the VCAT. The 12 month period runs from the date the accident victim first became aware of the decision. It is important to note that TAC also has an “internal review” process. Applying for an internal review by TAC does not stop the clock in relation to the 12 month limitation period. Time still runs even if an internal review is being undertaken. TAC common law damage claims – such claims must be brought within 6 years of the accident. It is possible, however, for claims to be brought after the 6 year period has expired but only in limited circumstances. It is imperative that expert legal advice be obtained in relation to the TAC common law damages time limit.