(a) That's not right. In early common law, when a person was killed by a defendant's tort, any personal rights of action died with the deceased. This meant that the deceased's estate could not claim compensation (for the benefit of his/her heirs).
However legislation in Australia has changed the law. A deceased's right to damages for personal injury now 'survives' their death.
This means that the deceased's representatives can bring an action claiming the damages to which the deceased would have been entitled.
Although the legislative provisions differ somewhat between the different jurisdictions, they generally allow the deceased's estate to recover damages for medical and similar expenses incurred by the deceased after the accident and before death; for the deceased's lost earning capacity during the same period; and for the deceased's funeral expenses.