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Motor accident compensation schemes

Most Australian jurisdictions have motor accident compensation schemes, funded through registration of vehicles and compulsory third party insurance. These schemes provide compensation for injuries caused in motor accidents. They are 'no-fault' schemes, so compensation is payable to a person injured in a motor accident regardless of whether or not the accident was due to anyone's negligence.

As with workers' compensation schemes, the drawback of claiming under such no-fault schemes is that the compensation paid is always less than full compensation, and almost always less than might be obtainable in a common law action in tort. There is thus a trade-off between the amount payable and the certainty of obtaining some compensation. Workers' compensation schemes and motor accidents compensation schemes together meet about 40% of all compensation claims.