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== History ==
In 1973, the [[Parliament of Victoria]] passed the Motor Accidents Act, which established the Motor Accidents Board to pay compensation to people injured in [[motor vehicle accidents]]. The Act granted a form of [[no-fault insurance]] to Victorian residents in certain circumstances, but victims retained their [[common law]] right to sue other drivers for fault or [[Tort of negligence|negligence]], and the Board was prevented from providing compensation in some situations, such as where the victim's [[blood alcohol content]] at the time of the accident was above 0.05%.<ref name="Malkin 1987">{{cite journal |last1=Malkin |first1=Ian |title=Victoria's Transport Accident Reforms - In Perspective |journal=Melbourne University Law Review |date=December 1987 |volume=16 |issue=2 |pages=254-295 |url=https://heinonline.org/HOL/P?h=hein.journals/mulr16&i=283 |accessdate=29 June 2019}}</ref>
Over the following decade, the compensation scheme was heavily criticised from two main perspectives: first, that the retention of common law rights discriminated between victims who could prove fault and those who could not; and second, that the scheme was financially unviable in the long term. In 1986, the [[Australian Labor Party|Labor]] government under Premier [[John Cain (41st Premier of Victoria)|John Cain]] proposed legislation that would re-establish the compensation scheme and completely eliminate the right of individuals to sue for damages in motor vehicle accidents. However, due to widespread political and public opposition, a compromise solution was arranged, whereby the no-fault compensation scheme would be radically expanded, but the most seriously injured victims would retain a right to damages. This solution was enshrined in law by the Transport Accident Act 1986, which established the Transport Accident Commission and became effective on 1 January 1987.<ref name="Malkin 1987" />
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