NRMA Insurance censured for delays in payment of weekly benefits
19 May 2023
SIRA has issued a letter of censure to Insurance Australia Limited trading as NRMA Insurance (NRMAI) following investigations into delays in processing the weekly payments of statutory benefits in seven CTP claims.
The claims investigated were notified to SIRA through complaints to the Independent Review Office (IRO) commencing in March 2021. SIRA issued a regulatory notice to NRMAI in November 2021, requesting analysis into how the delays occurred, a remediation plan, and assurance how they will prevent similar breaches occurring. The remediation plan began in December 2021 and remains open.
SIRA’s investigation into the seven claims found delays contravening Sections 1.3, 3.6(5), 3.19(1)(2), 7.14(4) and 10.7 of the Motor Accident Injuries Act 2017 and clauses of the Motor Accident Guidelines.
Details of the various contraventions were advised by SIRA to NRMAI on 13 December 2022 via an individual show cause letter for each matter. NRMAI has confirmed acceptance of the findings.
After considering the results of the investigation and the actions and submissions by NRMAI, SIRA decided the appropriate enforcement action in these cases was to issue a letter of censure.
SIRA is undertaking an independent verification of how insurers meet their weekly benefit obligations in May 2023 as part of their Insurer Claims and Conduct Assurance Program (ICCAP). The results of this audit will be published.
Further information
- SIRA letter of censure to NRMA Insurance dated 29 March 2023 pursuant of sections 1.3, 3.6(5), 3.19(1)(2), 7.14(4) and 10.7 of the Motor Accident Injuries Act 2017 and clauses of the Motor Accident Guidelines.