WILLIAMS v Government Insurance Office of New South Wales

The plaintiff, Williams, brought proceedings against the Government Insurance Office of New South Wales (GIO) seeking damages for personal injuries sustained in a motor vehicle accident. The case was heard in the Supreme Court of New South Wales, Court of Appeal.

The central legal issue before the Court of Appeal was whether the GIO, as the compulsory third-party insurer, was liable to indemnify the driver of the vehicle in which the plaintiff was a passenger, despite the driver's intoxication at the time of the accident. Specifically, the court had to consider the effect of section 175 of the *Motor Accidents Act 1988* (NSW) and its interaction with the common law principles of contributory negligence and the insurer's statutory obligations.

The Court of Appeal held that section 175 of the *Motor Accidents Act 1988* (NSW) imposed a statutory obligation on the GIO to satisfy judgments against insured persons, irrespective of any defences that might otherwise be available to the driver. This obligation was designed to ensure that victims of motor vehicle accidents were not deprived of compensation due to the negligence or other conduct of the driver. The court reasoned that the purpose of compulsory third-party insurance was to protect the public, and this purpose would be undermined if insurers could avoid liability based on the driver's intoxication. Therefore, the GIO was liable to indemnify the driver and, consequently, to pay damages to the plaintiff.