Reed v Allianz Australia Insurance Ltd

The case of Reed v Allianz Australia Insurance Ltd involved a claimant who was involved in a motor accident on 28 June 2018, which resulted in injuries. The claimant had a history of back pain and had undergone a prior discectomy, but was asymptomatic at the time of the accident. Following the accident, the claimant underwent spinal fusion surgery and developed a pulmonary embolism. The dispute centred on whether the claimant suffered a non-minor injury and the extent of any permanent impairment resulting from the accident.

The primary legal issues for the court to decide were whether the injury sustained by the claimant was a non-minor injury under the Motor Accident Injuries Act 2017 and the extent of any permanent impairment caused by the accident. The court was tasked with interpreting the meaning of "minor injury" within the context of the Act and determining whether the spinal surgery and the resulting pulmonary embolism were causally linked to the motor accident.

The court found that the motor accident aggravated pre-existing arthritis, leading to the claimant's lumbar spine becoming asymptomatic and necessitating spinal fusion surgery. The pulmonary embolism was caused by the surgery. The court interpreted the term "minor injury" in the Motor Accident Injuries Act 2017 as referring to injuries caused by the motor accident itself. The surgery and the resulting deep vein thrombosis were deemed to be caused by the motor accident. The pulmonary embolism was considered an injury to an organ (the lung), and thus not a minor injury as defined by the Act. The court assessed the claimant's impairment at 20% with a deduction of 5% for the pre-existing discectomy.

The court ordered that the claimant's injury was not a minor injury and that the permanent impairment resulting from the accident was assessed at 15%. Allianz Australia Insurance Ltd was directed to pay the claimant the appropriate compensation for the non-minor injury and the assessed level of permanent impairment.