(1)  Section 2(1) of the Principal Act is amended as follows:

(a) by omitting the definition of "accident" ;

(b) by inserting the following definition after the definition of "Board" :

caused by a motor vehicle has the meaning assigned by subsection (4) ;

(c) by inserting after the definition of "medical benefit" the following definition:

motor accident means an occurrence where a person suffers personal injury caused by a motor vehicle;

(d) by inserting after the definition of "participating insurer" the following definition:

personal injury means death or physical or mental injury including –

(a) prenatal injury; and

(b) nervous shock; and

(c) damage to a pair of prescription spectacles, prescription contact lens, denture, hearing aid, crutch, wheelchair, artificial limb, prosthetic device or prescribed item;

police officer means –

(a) in respect of a personal injury suffered in Tasmania –

(i) any person employed in the police force, within the meaning of the Police Regulation Act 1898 ; and

(ii) the Commissioner of Police; and

(b) in respect of a personal injury suffered in another State or a Territory of the Commonwealth, any person who holds a position in that State or Territory which corresponds with a position referred to in paragraph (a) ;

(e) by omitting "death of, or bodily injury to, any other person caused by or arising out of the use of" from the definition of "third party liability" and substituting "personal injury to any other person caused by" .

(2)  Section 2 of the Principal Act is amended as follows:

(f) by omitting "death or bodily" , twice occurring, from subsection (2) and substituting "personal" ;

(g) by inserting after subsection (3) the following subsection:

(4)  A person, whether or not in or on any motor vehicle, suffers personal injury caused by a motor vehicle if the personal injury is a direct result of –

(a) a collision, or action taken to avoid a collision, with that motor vehicle, whether the motor vehicle is stationary or moving; or

(b) that motor vehicle moving out of control; or

(c) the driving of that motor vehicle.