Accident compensation is clearly an important issue for the community. The number of people injured or killed in accidents in New South Wales each year is very large indeed. During 1980, 1303 people were killed in road accidents in the State; 39,000 were injured, about one-third of them seriously enough to be admitted to hospital. More than half the victims were under 25 years of age. Work can also be a very dangerous activity. New South Wales workers' compensation statistics for 1979-1980 show that 320 people died, and over 133,000 were incapacitated for at least three days, as the result of work- related injuries or diseases. There are no reliable statistics on accidental death and injury occurring otherwise than on the roads or at work. However, it seems that at least as many people are killed and injured in accidents of this kind as are killed and injured in road and work-related accidents.

The cost to the community of compensating accident victims and their families is very substantial Amounts paid to road accident victims in New South Wales through what is known as the compulsory third party insurance system totalled $233 million in 1980-1981. Amounts paid through the workers' compensation system (including common law damages in respect of industrial injuries and legal and investigation expenses) in the same year are estimated to have exceeded $400 million- When the management expenses of both systems are taken into account, the total costs are more than $700 million per annum. This of course is not the whole cost to the community of accidental death and injury, but it shows the magnitude of the problem.