This Commission has received a reference from the Attorney General, the Hon. F.J. Walker Q.C., M.P., to inquire into the subject of accident compensation. The terms of reference, which are set out in the Appendix to this Outline, are very broad. They require us to examine the compensation arrangements for road accident victims and for people who have been injured or killed in work-related accidents. We have also been asked to investigate compensation for people who have been injured in other kinds of accidents, such as those occurring at home, at school or during recreational activities.

The terms of reference specifically refer to the question of whether a "no-fault compensation scheme" should be introduced in New South Wales. A no-fault scheme is simply one which provides compensation to accident victims or their families without the need for the claimant to prove that the accident was caused by the fault or "negligence" of another person. While the phrase "no-fault scheme" is relatively new, the principle of no-fault compensation is well established in some areas. For example, workers' compensation legislation has been in force in New South Wales since 1910 and operates on a no-fault basis. Workers injured, say, in a factory during working hours may claim compensation from their employer even if they cannot show that the accident was the employee s fault.