Compulsory third party (personal injury) insurance is paid when you register your vehicle [Motor Vehicles Act 1959 (SA) ]. It covers drivers of your vehicle from claims for compensation by people injured or killed in accidents arising out of the use of the motor vehicle. The aim of the insurance scheme set up by the Motor Vehicles Act 1959 is to ensure that every vehicle being used on the road is insured. Allianz administers the compulsory third party insurance scheme for the Motor Accident Commission. A vehicle registered in another state, while not covered under this Act while being used for a visit to South Australia, is covered by a similar Act in the owner's home State.

Where the vehicle involved in the accident which caused personal injury was unidentified or uninsured, the action is taken directly against the Nominal Defendant. This means that a person injured by, for example, a hit-run vehicle can take action and be compensated for any injury even if the vehicle has not been identified. A person injured in a collision with a vehicle known to be uninsured or struck by an unidentified vehicle should immediately seek legal advice. A person injured by an unidentified vehicle must, to successfully claim damages for personal injury, satisfy the court that reasonable steps have been taken to identify the vehicle. The plaintiff must still establish that the injury was a result of the other driver's negligence.

It is only possible to claim damages for personal injury if a person can prove that the defendant has been negligent, see who is at fault?