
Can I claim car accident compensation when a mystery motorist is at fault?
Accident Statistics
If you’ve been injured in a car accident caused by an unknown or “mystery” motorist who leaves the scene, you may still be able to claim compensation through specific schemes. PK Simpson can explain your options in these challenging situations.
Claims Eligibility
Road users involved in car accidents in New South Wales are often eligible to make claims under the Motor Accidents Compensation Act 1999. However, what can injured parties do when the individual who caused the incident is unknown? This situation may arise in hit-and-run accidents.
The Nominal Defendant
What is the Nominal Defendant?
Fortunately, claimants can still pursue claims even when mystery drivers are at fault. The Act allows for cases against the Nominal Defendant, which is the entity that receives claims when the responsible driver is unidentified or uninsured.
No-win, no-fee guarantees enable individuals to pursue claims without having to cover the upfront costs.
Regulatory Changes
Until 1 September 2015, the Motor Accidents Authority acted as the Nominal Defendant in NSW. These responsibilities have since been assumed by the State Insurance Regulatory Authority, although the role remains largely unchanged.
What are my chances of success?
Claim Requirements
Claimants seeking compensation against unknown road users must prove they have made reasonable efforts to identify the responsible party. The Motor Accidents Compensation Act requires courts to be satisfied that “due inquiry and search” has been conducted before a claim can proceed.
Evidence may be provided through oral testimony or an affidavit from the person who carried out the inquiry. Once established, the courts may hold the Nominal Defendant liable as if it were the original driver.
In practice, claims against the Nominal Defendant carry similar prospects of success as claims against an identified driver, provided sufficient evidence and expert testimony is available.
Compensation claims can be made against unidentified drivers.
No-Win No-Fee Options
No-win, no-fee arrangements allow injured individuals to pursue compensation without paying upfront legal costs. Expenses such as court filing fees, expert reports and barristers’ advice are covered by the lawyer and deducted only from a successful settlement.
The Nominal Defendant may therefore be found liable in place of an identifiable driver.
Recent Compensation Example
Case Details
The NSW Supreme Court Court of Appeal upheld a decision against the Nominal Defendant following a 2012 accident. The plaintiff, Jereme Smith, was injured while travelling as a passenger in a vehicle driven by an acquaintance.
Evidence showed an unidentified black car cut in front of their vehicle, causing the driver to lose control and collide with another motorist. As the driver was never located, the claim proceeded against the Nominal Defendant and the vehicle driver.
Court Decision and Appeal
The trial judge apportioned liability at 60 per cent to the Nominal Defendant and 40 per cent to the driver, resulting in a compensation payout of $425,366.
The Nominal Defendant appealed the decision, but the Court of Appeal dismissed the appeal and ordered the Nominal Defendant to pay the plaintiff’s appeal costs.
Anyone involved in a serious motor accident where another party is at fault should contact PK Simpson as soon as possible. Strict time limits apply, making early legal advice essential.
Frequently Asked Questions
What do you do after a car accident in Australia?
If you’ve had a motor vehicle accident, stop your car and turn on your hazard lights. Check for injuries and call emergency services on 000 if required. Exchange details with other parties and witnesses, and avoid admitting fault.
How long does it take to make a motor vehicle accident compensation claim?
Claims are usually finalised after recovery or once injuries have stabilised. This can range from weeks to years depending on the severity and progression of injuries.
Who is at fault in a car park accident?
Vehicles driving in car park lanes generally have right of way. Drivers reversing or exiting spaces are often primarily at fault, though responsibility may be shared.
How long after a car accident can you claim in Australia?
Claims should be lodged as soon as possible. In NSW, time limits apply and legal advice should be sought promptly to avoid losing entitlements.
How much does it cost to make a motor vehicle accident compensation claim?
PK Simpson operates on a no-win, no-fee basis. Legal costs for statutory CTP claims are regulated and further details are available via the NSW State Insurance Regulatory Authority.

