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ARTICLE · 18 JUNE 2015

Credit hire insurance claims update

Recent developments in the Small Claims Division demonstrate a changing attitude of the Assessor to credit hire matters.

AustraliaInsurance

There have been some recent developments in the Small Claims Division on the issue of credit hire.

Unlike the decision of Pham v Rahman, where the Assessor accepted tiered rates for the hire of a replacement vehicle, in Hayes v Batesman the Court did not accept the tiered rates in the assessment of loss. However, this matter was decided on the facts following the cross-examination of an employee from a rental company. Hayes v Batesman left it open for a the Court to accept tiered rates if the appropriate evidence was before the Assessor.

Last week a judgment was handed down in the matter of Gary Ross v State Transit Authority. In this matter, the Assessor said that the distinction between special and general damages is now an important one, and assessed this claim as a general damages claim (as general or special damages was not specified by the Plaintiff). The Assessor found that in assessing general damages the Plaintiff needs to prove 'need' for the

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