Quarterly regulatory update

SIRA has published a summary of its regulatory activity in the motor accidents and workers compensation schemes from 1 July 2021 to 30 September 2021.

Motor accidents CTP scheme

This quarter in the CTP scheme, SIRA issued 12 regulatory notices to insurers. QBE received 7 of the 12 regulatory notices. The breaches related to communication of entitlements to damages, CTP refund timeframes, incorrect weekly benefit payments, injury coding timeframes, timeliness of decisions and incorrect premiums.

In response to these breaches, SIRA directed insurers to implement 7 formal remediation plans to oversee improved performance and compliance.

The Independent Review Office notified SIRA of 27 significant matters.

Workers compensation

In the workers compensation scheme, 10 self-insurers were subject to a pre-injury average weekly earnings (PIAWE) review this quarter. SIRA made recommendations for improvement, particularly around indexation. SIRA will continue to review other self-insurers’ PIAWE calculations.

In response to recommendation 7 of the McDougall Review, SIRA engaged its independent actuary to stress-test the assumptions in the Nominal Insurer 2021-2022 Business Plan. This review found that the baseline financial projections were reasonable, however some assumptions underlying the financial projections were not included in the plan. SIRA recommended to icare that additional documentation should be included within the plan.

Over 700 businesses purchased a workers compensation policy to protect their workers after SIRA commenced non-insurance investigations. This raised over $2.6 million in additional premiums and  resulted in an extra 3,000 workers being covered by a policy.

This quarter SIRA maintained its focus on employers’ workplace injury management obligations. Fifteen notices were issued to employers for failing to establish a return to work program, appoint a return to work coordinator, or provide suitable work.

SIRA also responded to 55 complaints about employers’ behaviour and alleged non-compliance with return to work and suitable work obligations.