The State Insurance Regulatory Authority (SIRA) has issued a letter of censure to Insurance Australia Limited, trading as NRMA Insurance (NRMAI).
This action follows delays in initiating weekly payments of statutory benefits in four compulsory third party (CTP) claims.
SIRA conducted a comprehensive investigation that uncovered substantial delays, violating Section 3.23 and 10.7 of the Motor Accident Injuries Act 2017, along with principles 4.5 and 4.6 in the Motor Accident Guidelines. It also found that NRMAI’s actions breached clause 10 of its standard license conditions, spanning from August 12, 2021, to March 19, 2023.
Acknowledging the investigation’s findings, NRMAI responded to two show cause notices issued by SIRA in May and July 2023. The company acknowledged the identified issues and detailed the implementation of remediation measures and performance management actions. These measures specifically targeted individual performance to ensure adherence to regulatory requirements.
In response to NRMAI’s initiatives, SIRA stated it has recognised the company’s efforts to fulfill its obligations under the Motor Accident Injuries Act, particularly in making timely weekly statutory benefit payments.
Considering the circumstances, SIRA deemed a letter of censure an appropriate response and pledges to closely monitor NRMAI’s performance. It emphasised that persistent non-compliance may result in further actions, including the imposition of civil penalties.
