$142 mil "saved". Legal change raises bar for compensation for post-accident mental injuries.

Transport Accident Commission saves millions by cutting mental illness compensation claims

Jane Lee

A new definition for severe mental injury was introduced into law last year, requiring people to prove they had significant symptoms for at least three years after they were in a car accident to be eligible for common law compensation. Leading psychiatrists have criticised the test as too harsh and say it excludes many people who should be able to make a claim.

It is understood that the commission has not processed any claims for severe mental injury compensation under the new criteria since it was introduced in October 2013.

A letter obtained by Fairfax Media reveals that the Transport Accident Commission lobbied the government for two years for the change because it believed the old threshold for mental injury compensation was not financially sustainable.

Read more: http://www.theage.com.au/victoria/transport-accident-commission-saves-millions-by-cutting-mental-illness-compensation-claims-20141026-11c136.html#ixzz3Jo3Q0APj