Nominal Defendant finalises last FAI claim

The Motor Accident Insurance Commissions’ Nominal Defendant team recently made history by finalising the very last FAI claim.

Two decades in the making, the Nominal Defendant played a significant role in providing support and guidance following the failing of FAI as a result of HIH’s collapse in 2001.

Insurance Commissioner Neil Singleton said today marks a significant milestone with the very last historical FAI claim finally being completed.

“Our Nominal Defendant team received more than 4000 FAI claims following the collapse of Australia’s second-largest insurer at the turn of the millennium.

“The twenty-year process was a result of the final claim involving a claimant who was under the age of 18 at the time of the car crash and sustained a brain injury as a result of the impact,” Mr Singleton said.

“Due to the young age of the claimant, limitation periods don’t become activated until the claimant is 18 years of age and then they have three years from when they turn 18 to complete their claim. This is why the final FAI claim has taken a significant time to be completed.”

The Nominal Defendant plays a critical role in protecting Queenslanders in the event a Queensland CTP licensed insurer fails. Section 33 of the Motor Accident Insurance Act 1994, states that if a licensed insurer becomes insolvent, the Nominal Defendant becomes the insurer unless the claims are transferred to another private CTP insurer.

In the case of the collapse of HIH, and its Queensland CTP licensed subsidiary, FAI, the Motor Accident Insurance Act 1994 stipulates the State Government must cover the cost of FAI’s outstanding CTP claims liabilities to ensure claimants receive the financial support to live a fulfilling life.

“I would like to thank the Nominal Defendant team for their ongoing commitment to support and process these outstanding claims over the past 20 years to protect and provide life-changing support to those impacted by car crashes,” Mr Singleton said.


What is the Nominal Defendant?
The Nominal Defendant is a statutory body established under the Motor Accident Insurance Act 1994 (MAI Act) to compensate people who are injured as a result of the negligent driving of unidentified and/or uninsured (no Compulsory Third Party (CTP) insurance) motor vehicles. The Nominal Defendant Fund was first introduced in 1961.

The Nominal Defendant operation is funded by a levy within the CTP insurance premium. The levy is set based on an actuarial assessment of claim trends.

Last modified 2 June 2021


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