Dimovski v Government Insurance Office of New South Wales (GIO); Zoranko v GIO; Durdevic v GIO

These three appeals, heard together, concerned claims for damages for personal injury arising from motor vehicle accidents. The appellants, Dimovski, Zoranko, and Durdevic, were all passengers in a vehicle driven by one Mr. Vlahos, who was insured by the Government Insurance Office of New South Wales (GIO). Each appellant alleged that they had suffered injuries due to the negligent driving of Mr. Vlahos and sought to recover damages from GIO under the relevant compulsory third-party insurance legislation. The primary dispute revolved around whether the appellants were entitled to recover damages, given the circumstances of the accidents and the nature of their injuries. The appeals were heard by the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the appellants, as passengers in a vehicle driven by an insured party, were entitled to recover damages for their injuries from the insurer, GIO, when the driver's negligence was the cause of the accident. Specifically, the court had to consider the application of the relevant provisions of the *Motor Accidents Act 1988* (NSW) and any common law principles that might affect the insurer's liability in such circumstances. The court was required to determine if any defences were available to GIO, or if the appellants' claims were validly made out under the statutory scheme.

The Court of Appeal ultimately found in favour of the appellants. The court reasoned that under the *Motor Accidents Act 1988* (NSW), GIO, as the compulsory third-party insurer, was liable to compensate passengers injured in accidents caused by the negligence of the insured driver. The court rejected any arguments that might have sought to limit GIO's liability, emphasizing the protective purpose of the compulsory insurance scheme for innocent third parties. The principles applied focused on the insurer's statutory obligation to cover damages for personal injury caused by the insured's negligence, irrespective of any potential contributory negligence or other defences that might have been raised in a different context. The court ordered that the appeals be allowed and that the matter be remitted for assessment of damages.