This decision of Perez v AAI Limited t/as AAMI [2026] NSWPIC 264, delivered on 29 April 2026 from the New South Wales Personal Injury Commission, provides that claimants can obtain English language lessons under insurance, as part of post-injury rehabilitation.
Overview of the facts
The claimant in this case was Carlos Perez. Mr Perez was involved in a motor accident in October 2023 when, after stopping his motorcycle at a set of lights in the Mascot area, he was rear-ended by another motor vehicle. At the time of this claim, Mr Perez had an injured arm and suffered from shock which were worsened by a subsequent unreported accident. The accumulation of these events led him to cease working.
He made various insurance claims, but this decision considered only whether his request for a payment to cover an English language course was payable by the insurer.
Legislation
Under Section 1.4 of the Motor Accident Injuries Act 2017 (the Act), benefits are allocated where a person is entitled to reasonable expenses for their “treatment and care”, extended to include services for “rehabilitation”. Section 1.4 of the Act defines “rehabilitation” as enabling “independent living”, “full educational and vocational ability”, and “participation in all aspects of life”. Under the Act, insurers are not obligated to cover care that is unreasonable, unnecessary or unrelated to injuries.
Competing interpretations of the legislation
The insurer contended that they were not liable for all care requests arising from accidents. The related injuries suffered by Mr Perez were entirely separate to a claim for a language course, because he did not incur a loss of the ability to speak English nor were the lessons a treatment improving the claimant’s physical or psychological injuries. Instead, the lessons were an attempt to “acquire a skill after the accident”, unrelated to the actual injuries. Thus, were not covered by the insurance.
Mr Perez contended that the language course was a “treatment and care” payable under the statutory benefit as a form of rehabilitation.
Decision
The Commission considered that the definition of rehabilitation under the Act did not focus on injuries from an accident but instead focussed on the overall impacts on the person. Further, the Commission found that, while a language course was not a rehabilitation type specified under s 1.4, it was a relevant form of education and vocational training for a person with poor English and thus was not excluded under the Act.
The Commission thus determined that a non-English speaking person, whose accident-related injuries stopped them from being able to perform their job that did not require proficient English, could obtain lessons as part of their rehabilitation to restore them to their “full vocational ability”, allowing them to be otherwise employable. The Commission further asserted that this could also apply to an isolated person whose mental health was affected by their injury, where English lessons could be covered insurance to promote “participation in all aspects of life”.
Effect
This decision only clarified what could be classified as “rehabilitation” under s 1.4 and did not answer the question of whether the language course was reasonable or necessary given the circumstances. This was an issue requiring further medical assessment of the psychological and physical injuries sustained by the claimant.
Overall, this case broadened the category of “treatment and care” for claimants seeking statutory benefits for English language lessons by their insurers.
This case can be read in further detail here: https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWPIC/2026/264.html
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