Choi v Insurance Australia Limited t/as NRMA Insurance

In the case of Choi v Insurance Australia Limited t/as NRMA Insurance, the claimant, Choi, sought compensation for psychological injury sustained in a motor accident on April 23, 2017, which was subsequently aggravated by a second motor accident in December 2017. The dispute centred on the extent of permanent impairment attributable to the psychiatric injury caused by the initial motor accident. Following a re-examination by medical assessors, Choi was assessed with a 17% whole person impairment (WPI) due to persistent depressive disorder with anxious distress, exacerbated by the second accident.

The primary legal issue before the court was the appropriate application of Clause 1.34 of the Motor Accident Permanent Impairment Guidelines to the claimant's case, particularly in the context of subsequent injuries. The court had to determine whether the second accident's aggravation of the claimant's condition fell under the first or second category as outlined in the case of State Government Insurance Commission v Oakley. The Panel found that the second accident fell under the second Oakley category, where the subsequent injury aggravated the pre-existing condition. It was held that the impairment assessment should be based on the claimant's condition at the time of the initial accident, rather than at the time of the subsequent accident.

The court applied the principles from GIO Insurance v Smith, concluding that the physical injuries from the subsequent accident had resolved, but the claimant's injuries to the low back and left shoulder from the initial accident were ongoing. The court found that Clause 1.34 did not necessitate a deduction for subsequent injuries, and making a specific deduction under Clause 1.34 was problematic given the difficulties in articulating a proper basis for any specific amount. Given the resolution of physical symptoms from the subsequent accident, no deduction was made, and the claimant's WPI was assessed at greater than 10%.

The final order was that the claimant's WPI assessment stood at greater than 10%, with no deduction made for the subsequent aggravation of the pre-existing condition.