The safety benefits of side impact airbag (SAB) systems have been demonstrated in a number of studies. Side airbags were first fitted as standard equipment in a locally manufactured passenger vehicle in Australian in the 2000 model year. By 2006, only 33% of new passenger vehicles (cars, sports utility vehicles and people movers) sold in the State of Victoria were fitted with front curtain airbags as standard equipment. The Transport Accident Commission - which functions as a statutory road crash compensation agency for the State, actively promoted the benefits of SAB systems to encourage purchasers of new vehicles to choose vehicles with SAB systems fitted. By the last quarter of 2010 the percentage of new passenger vehicles sold with front curtain airbags fitted had increased to 72%.

The aim of this paper was to estimate the future economic benefits of side impact airbags fitted into passenger vehicles in Victoria for the period 2011 to 2040 under a ‘business-as-usual’ scenario. In doing so, the benefits to the driver involved in a near (struck) side crash of SAB systems that protect the head and torso are compared to those afforded by torso only systems.

A range of inputs were used to calculate the economic benefits associated with side airbags including published estimates of their effectiveness in mitigating injury;​ the future number of passenger vehicles and an estimate of the future number of crashes. A 7% discount rate was used and benefit-cost ratio values were derived.

Under a business-as-usual scenario, it was assumed that side airbags would be fitted to all new passenger vehicles by 2014. Hence, by 2037 all registered passenger vehicles in the fleet would be fitted with SAB systems.

It was estimated that over the 30 year period (2011- 2040), 738 lives would be saved and 17,361 drivers would avoid serious injury. Financial savings to the Victorian community were estimated to be $A3.2 billion for an outlay of $A1.6bn in today’s terms. The resultant overall BCR was 2.07:​1 assuming an installation cost of A$600. The benefits were somewhat less when assuming torso-only SAB systems were fitted, although the BCR remained positive at 1.16:​1.

The findings highlight the efficacy of SAB systems in mitigating individual and societal loss associated with side impact crashes. Moreover, the analysis lends weight to efforts by road safety stakeholders to increase the uptake of side airbag systems by consumers.