Transport Accident Amendment Bill 2013 Introduction Print EXPLANATORY MEMORANDUM General The main purpose of this Bill is to make amendments to the Transport Accident Act 1986 (the Act) to further improve the operation of that Act. The Bill includes a number of amendments to maintain the integrity and improve the operational efficiency of the Victorian transport accident scheme by clarifying the intention of the Act and increasing certain benefits to persons and families of those who are injured or killed in transport accidents. Some of the key amendments will— 571214 clarify the definition of severe long term mental or severe long-term behavioural disturbance or disorder for the purposes of the serious injury provisions in Part 6 of the Act; increase the amount of family counselling available for the families of people who die or are severely injured in a transport accident; provide that the TAC is only liable to pay the reasonable costs of a certificate, or a report obtained for medico-legal purposes, if it is provided jointly to the TAC and the person who is injured; increase travel or accommodation expenses for members of the immediate family visiting an injured person in hospital; repeal Part 2A of the Act, which dealt with the TAC's obligations in relation to the winding up the Farrow Group of Building Societies and associated entities; 1 BILL LA INTRODUCTION 15/10/2013 extend reimbursement of reasonable travel costs to persons attending a Registered Training Organisation, TAFE institution or university who were studying before their transport accident and who are unable to travel by their pre-accident means of transport, because of their injuries; enable introduction of guidelines regarding the use and application of the A.M.A Guides for the assessment of the degree of permanent impairment of a person injured as a result of a transport accident; and introduce a more flexible approach to the payment of funeral costs under the Act. Clause Notes Clause 1 sets out the purpose of the Bill, which is to make amendments to the Transport Accident Act 1986 to further improve the operation of that Act. Clause 2 provides for the Bill to commence on the day after the day on which it receives the Royal Assent except section 27, which is taken to have come into operation on 16 October 2013. Clause 27 contains an amendment to section 93 to incorporate clinical criteria to be applied when assessing whether a person has a severe long-term mental or severe long-term behavioural disturbance or disorder. Clause 3 provides that in this Act, the Transport Accident Act 1986 is called the Principal Act. Clause 4 amends the definition of dependent child in section 3(1) and amends section 68(3)(a) of the Act to provide that a dependent child of a person who dies as a result of a transport accident, who was under the age of 18 at the time of the transport accident, is able to make a claim for dependency benefits at any time before attaining the age of 21 years, if no dependency claim has been made on their behalf. Clause 5 inserts a new subsection (aa) in the definition of medical service in section 3(1) and inserts a new subsection (aaa) in section 23(1)(a) to provide that occupational therapy services are included as a medical service and that these services require prior approval. The provision also adds occupational therapists to the list of practitioners that the TAC may require a person to be 2 examined by under section 71 of the Act for the purposes of assessing the person's entitlement to compensation. Clause 6 inserts the definitions of RTO, TAFE institute and university in section 3(1) and substitutes the definition of transportation costs in section 3(1) of the Act to extend reimbursement of reasonable travel costs to persons attending RTO, TAFE institutes and university who were students before their transport accident and who are unable to travel by their pre-accident means of transport, because of their injuries. Clause 7 inserts a new subsection (d) in section 3(1A) of the Act to confirm that incidents involving the opening or closing of train, tram and bus doors are transport accidents. Clause 8 repeals sections 13(3), 14(1)(c), 14(3), 27(2)(fa), 27(3)(ha) and Part 2A of the Act, which finalises the Government's response to the collapse of the Farrow Group of Building Societies in 1991. Clause 9 amends section 16(3)(d) of the Act to provide that Director's resignations are to be submitted to the Minister instead of the Governor in Council. Clause 10 amends section 39(3)(b) of the Act to the effect that the TAC is not liable to pay compensation other than medical and like services to the driver of a motor vehicle who is convicted of an offence in another State or Territory that is declared by Order in Council to be a corresponding law, which is intended to be a law that is equivalent to culpable driving causing death or dangerous driving causing death under the Crimes Act 1958. Clause 11 inserts a definition in section 42(5) of the Act to clarify that law of a place outside Victoria and proceedings outside Victoria includes a law of the Commonwealth or a proceeding under Commonwealth law. Clause 12 amends sections 46A(1A), 47(7)(a), section 67(1) and repeals section 67(1A) of the Act to clarify that a person who is injured in a transport accident must have an accepted claim for compensation in their own right for their own personal injury in order to obtain a determination of impairment and consequently seek access to common law damages. 3 Clause 13 inserts a new section 46A(1E) of the Act to clarify that the TAC is only required to determine the degree of transport accidentrelated impairment of a person and, in the case of a person who has an injury that existed before the transport accident that is aggravated by an injury that was the result of a transport accident, the use of the apportionment methodology set out in Chapter 3.3f of the A.M.A Guides is to be used for spinal injury and in any other case, use the substraction methodology set out in Chapter 2 of the A.M.A Guides. Clause 14 inserts new sections 46A(2C) and 46A(2D) to provide for the TAC, with the approval of the Minster, to publish a Guides Modification Document to set out guidelines regarding the use and application of the A.M.A Guides for the assessment of the degree of permanent impairment of a person injured as a result of a transport accident. Clause 15 amends section 46A(4)(a) and 46A(4)(b) of the Act to clarify that diminution of hearing must be assessed as a binaural loss of hearing. Clause 16 amends section 60(2)(a) of the Act to provide that the reasonable costs of vocational rehabilitation services can be paid as compensation under section 60 of the Act. Clause 17 amends section 60(2A)(a) of the Act to provide that family counselling services are increased to a total of $15 000 for the immediate family of a person who has died or is severely injured in a transport accident. Clause 18 amends section 60(2A)(b) of the Act to provide that the total amount of compensation payable for the costs of funerals, burials or cremations, monuments, or any other expense prescribed for the purposes of this section, is $14 135. This amount will be indexed each year under section 61. Clause 19 amends section 60(2BA) of the Act to increase the period for which travel expenses may be claimed from 12 weeks to 24 weeks and to provide that the weeks do not have to be consecutive or immediately following the transport accident. Clause 20 amends sections 60(2D)(c) and 60(2E) of the Act to increase the amount of claimable travel or accommodation expenses for members of the immediate family visiting the injured person in hospital to $10 000. 4 Clause 21 inserts section 60(2F) and amends section 71(1) of the Act to provide that the TAC is liable to pay the reasonable costs of a certificate, or a report or other document obtained for medicolegal purposes, if it is provided jointly to the TAC and the person who is injured. The provision also confirms that the TAC may require a person who was injured as a result of a transport accident to submit from time to time for examination by one or more medical services providers nominated by the TAC, including for Part 6 purposes. Clause 22 amends sections 60(11A) and 61(7) of the Act to provide that contributions by persons residing in shared supported accommodation must not exceed $32.50 per day towards the cost of that accommodation, consistent with existing requirements of an Order in Council. Section 61 of the Act provides that the amount of $32.50 is to be indexed by the Consumer Price Index on 1 July each year. The amendment to section 61(7) provides for the power to suppress indexation in any year by Order of the Governor in Council. Clause 23 amends section 61A(4)(e) of the Act to increase the cap on aids, appliances or apparatus, that can be purchased under the terms of an Individual Funding Agreement to $1000. Clause 24 inserts section 67A into the Act to provide that a person who makes a claim for compensation must, as soon as practicable, sign an authority in a form approved by the TAC, to release relevant medical or other information to the TAC for the purpose of processing, assessing or otherwise managing the person's claim and that a person may sign more than one authority. Clause 25 amends section 74(2)(b) of the Act to the effect that the TAC is able to discontinue or reduce a person's entitlement to loss of earning capacity benefits if the TAC reasonably believes that the person has not accepted a reasonable offer of suitable employment or a reasonable offer of rehabilitation or vocational rehabilitation services. Clause 26 inserts section (2A) after section 93(2) of the Principal Act to provide that a person who is injured as a result of a transport accident may not recover damages in respect of mental injury (including nervous shock) in circumstances where the person was not directly involved in and did not witness the transport accident, and the mental injury (including nervous shock) was 5 suffered as a result of the injury or death of another person who was directly involved in the transport accident, and the transport accident was caused by that other person committing suicide, intending to commit suicide or as result of the sole or predominant negligence of that other person. Clause 27 inserts a clinical framework into section 93(17) of the Act to define what is a severe long-term mental or severe long-term behavioural disturbance or disorder. This clause will come into operation on 16 October 2013 and apply to an application for a serious injury certificate under section 93(4)(c)(ii) and an application to the Court for leave under section 93(4) made after that date. The provision is given effect in respect of all applications made after that date to ensure that the new criteria are given immediate effect and to ensure there is no incentive to lodge applications for a serious injury certificate prematurely to avoid the application of the revised test. This will ensure there is no significant increase in lodgements and will avoid the risks associated with increasing liability associated with increasing lodgements prior to introduction of the revised clinical framework for the assessment of mental injuries. Clause 28 amends section 120(4) of the Act to increase the time limit for certain criminal prosecutions under section 116, 117 or 117C from 2 years to 3 years after the alleged offence occurred. Clause 29 amends section 127(3A) and 124(4) of the Act to extend the definition of an employer to include a person who had entered into an agreement with a person who is injured or dies in the transport accident in the 3 years preceding the accident. Clause 30 inserts a new Division 7 in Part 11 of the Act which provides the transitional provisions associated with the provisions of this Bill and clarifies the application of the provisions of the Bill as follows— New section 206 defines the Transport Accident Amendment Act 2013 to be the amending Act and also provides associated definitions of amending provision and commencement date. New section 207 provides that the Act, as amended by section 4 of the amending Act, applies in respect of a claim for dependency benefits lodged on or after the date that the amending Act receives the Royal Assent. 6 New section 208 provides that the Act, as amended by section 5 of the amending Act, applies in respect of a request for occupational therapy services made on or after the date that the amending Act receives the Royal Assent. New section 209 provides that the Act, as amended by section 6 of the amending Act, applies in respect of a request for reimbursement of transportation costs made on or after the date that the amending Act receives the Royal Assent. New section 210 provides that the Act, as amended by section 7 of the amending Act, applies in respect of a transport accident that occurs on or after the date that the amending Act receives the Royal Assent. New section 211 provides that the Act, as amended by section 10 of the amending Act, applies in respect of a transport accident that occurs on or after the date that the amending Act receives the Royal Assent. New section 212 provides that the Act, as amended by section 11 of the amending Act, applies in respect of a transport accident that occurs on or after the date that the amending Act receives the Royal Assent. New section 213 provides that the Act, as amended by section 12 of the amending Act, applies in respect of a transport accident that occurs on or after the date that the amending Act receives Royal Assent. New section 214 provides that section 13 of the amending Act, applies in respect of any determination of the degree of impairment of a person injured as a result of a transport accident that occurred on or after 19 May 1998, regardless of when the injury occurred. This date of operation coincides with the date that the TAC adopted the 4th Edition of the A.M.A Guides, the Evaluation Impairment and the apportionment approach to determining transport accident related impairment confirmed by clause 13. New section 215 provides that the Act, as amended by section 15 of the amending Act, applies in respect of a determination of the degree of impairment of a person injured as a result of a transport accident made on or after the date that the amending Act receives the Royal Assent, regardless of when the transport accident occurred. 7 New section 216 provides that the Act, as amended by section 16 of the amending Act, applies in respect of all applications for vocational rehabilitation services, regardless of when the applications were made. New section 217 provides that the Act, as amended by section 17 of the amending Act, applies in respect of a claim made on or after the date that the amending Act receives the Royal Assent. New section 218 provides that the Act, as amended by section 18 of the amending Act, applies in respect of a transport accident that occurs on or after the date that the amending Act receives the Royal Assent. New section 219 provides that the Act, as amended by section 19 of the amending Act, applies in respect of a transport accident that occurs on or after the date that the amending Act receives the Royal Assent. New section 220 provides that the Act, as amended by section 20 of the amending Act, applies in respect of all requests for compensation under section 60(2E) regardless of when the claim was lodged. New section 221 provides that the Act, as amended by section 21 of the amending Act, applies in respect of all examinations after 1 July 2014 that occur for the purposes of obtaining a document for medico-legal purposes. New section 222 provides that the Act, as amended by section 23 of the amending Act, applies in respect of all claims, regardless of when the claim is made. New section 223 provides that the Act, as amended by section 25 of the amending Act, applies in respect of all claims, regardless of when the claim is made. New section 224 provides that the Act, as amended by section 26 of the amending Act, applies in respect of a transport accident that occurs on or after the date that the amending Act receives the Royal Assent, except in the case of a person who as at the date of Royal Assent— has been issued a certificate under section 93(4)(c)(ii); or has been granted leave under section 93(4)(d). 8 New section 225 provides that the Act, as amended by section 27 of the amending Act, applies in respect of an application made on or after 16 October 2013 for— a certificate under section 93(4)(c)(ii); or leave under section 93(4)(d). This clause comes into operation from 16 October 2013 to avoid potential adverse effects of delaying introduction of clause 27. New section 226 provides that the Act, as amended by section 28 of the amending Act, applies to an offence against section 116, 117 or 117C that is alleged to have been committed on or after the date that the amending Act receives the Royal Assent. Clause 31 provides for the automatic repeal of this amending Act one year after all of its provisions come into operation (the repeal of the amending Act does not affect the continuing operation of the amendments made by it: see section 15(1) of the Interpretation of Legislation Act 1984). 9