Before the Injuries Board was established any defendant/insurance company could make a lodgement or tender in Court. The words mean the same thing that is a sum of money which the Insurance company say is sufficient to pay for the injury and outlays. In later years it became a simple letter written to the injured party or their adviser. This indicated the Defendant would pay a certain amount to meet the claim. This also meant they would pay the injured party’s costs up to date of that letter.

The injured party then had to decide if they could convince a Judge in a hearing they were worth more. The risk is whether to accept the amount that was being offered or to go for a full hearing. The Judge in deciding the level of compensation never knows whether a tender/lodgement exists or not.

With the introduction of the Injuries Board the situation changed. The offer made by the Defendant Insurance company becomes an automatic tender. In plain words, if you choose to go ahead to Court you must be awarded more than the Injuries Board offers or you will have to pay your own costs and the Insurance company Solicitor costs. This is a serious matter and requires you to be properly advised on your best course of action.

The first amendment to the 2004 PIAB Act took away any discretion a judge might have whether costs are awarded against someone who is not awarded more than a Lodgement /Tender. If you lose you pay and that will use up your compensation money . It is designed to “encourage” injured parties to accept lodgements… keep down the cost of claims.