SIRA fines insurer Catholic Church Insurance Limited
30 October 2023
SIRA has fined Catholic Church Insurance Limited (CCI) $11,000 for breaching the conditions of its workers compensation licence.
On 3 May 2023, CCI gave formal notice to SIRA that it would cease offering new or renewing existing workers compensation policies from 29 June 2023. The conditions stated in section 12.1 of CCI’s workers compensation licence requires CCI to provide at least three months formal notice to SIRA if it intends to cease underwriting new workers compensation policies.
In June 2023, CCI wrote to SIRA and acknowledged it had failed to provide formal notice in accordance with its licence conditions.
SIRA, after considering the circumstances and ramifications of the breach and submissions by CCI, has decided the appropriate regulatory response is the imposition of a civil penalty – a fine of $11,000- in accordance with section 183A of the Workers Compensation Act, 1987. This section of the act provides for a penalty up $50,000.
Factors taken into consideration when considering the appropriate penalty include that CCI, as a longstanding licence holder, should have been aware of the requirement to give three months’ notice, and the imposition on policy holders to find alternatives within a limited time.
CCI has paid the fine.
SIRA has acted to ensure that employers and workers are not disadvantaged or unduly affected by CCI’s decision to cease.