THE THEORY OF ACCIDENT COMPENSATION AND THE INTRODUCTION OF COMPULSORY SEAT BELT LEGISLATION IN NEW SOUTH WALES

The effect of the introduction of compulsory seat belt legislation in New South Wales in 1971 is examined. A significant decrease in both total fatalities and occupant fatalities is reported, as well as a slight increase in non-occupant fatalities. This increase in non-occupant fatalities is examined and it is concluded that it is due to the increasing popularity of motorcycles from the mid 1960S. The evidence does not support the accident compensation view of the effectiveness of compulsory seat belt legislation, and it is argued that this is because perceived risk does not accurately correspond to actual risk. If actual risk is a combination of the risk of a crash and the risk of a serious injury or death given that a crash occurs, then perceived risk is biased toward the risk of a crash. Seat belt legislation does not affect a driver's risk of crashing and therefore perceived risk does not decrease, and compensation should not be expected (a). The number of the covering abstract of the conference is TRIS no. 368448. (TRRL)