The State of New Jersey adopted the No Fault Act in 1972. One of the purposes of the statute, the “reparation objective,” was to provide first-party personal injury protection coverage for the payment of medical expenses. Another purpose, the “judicial objective,” was to reduce the number of third-party liability lawsuits by limiting the rights of accident victims to recover compensatory damages for pain and suffering.
Thus, the No Fault Act established a balance between an accident victim’s first-party and third-party rights. A person injured in an automobile accident will receive a generous package of PIP benefits — regardless of fault — in return for a limitation on the right to recover damages from a negligent driver, if the claimant is subject to the statutory threshold.
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