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10.12.10 Determining the amount of MVCS compensation payable

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Last amended 
1 November 2023

The delegate should determine the amount of compensation that is payable, to an eligible person under the MVCS, according to what is reasonable.

In reaching this decision, the delegate will consider factors such as, but not limited to:

  • the nature of the person’s impairment;
  • the nature, type and cost of the proposed motor vehicle;
  • the nature, type and cost of proposed driving devices or modifications;
  • the type and cost of accessories that are reasonably required for the person;
  • the type and cost of alternative suitable driving devices or modifications or motor vehicles that are reasonably available and cost effective;
  • the ability of the proposed motor vehicle to be fitted with any necessary driving devices or be otherwise modified for the person;
  • in relation to a second-hand motor vehicle - the number of kilometres travelled by the motor vehicle, the life of the motor vehicle, and the advice of an approved program provider or a Driver Trained Specialist Occupational Therapist regarding the type of the motor vehicle, accessories and modifications that will make the motor vehicle safe and reasonably comfortable for the person;
  • if the person’s existing motor vehicle was stolen or destroyed through no fault on the part of the person - the full amount of the insurer’s write-off payment; and
  • bonuses and discounts offered by a motor vehicle dealer.

The approved program provider or a Driver Trained Specialist Occupational Therapist should generally obtain three quotes for motor vehicles and/or modifications in order to ensure that the amount quoted is reasonable. In limited circumstances, one quote may be sufficient if the approved program provider or occupational therapist provides advice that it is a fair quote in their experience.

In determining the amount of compensation that is reasonable to subsidise the purchase of a motor vehicle, the delegate must deduct the trade-in value of the person’s existing motor vehicle or interest in a motor vehicle. If the person wishes to keep their existing motor vehicle, the delegate must obtain an estimate from the motor vehicle dealership of the trade-in value of the person’s motor vehicle in order to determine an appropriate amount to deduct from the compensation payment.

The RedBook website may be used to estimate the value of motor vehicles.