24 January 2025
SIRA issued a $10,000 civil penalty to Insurance Australia Limited trading as NRMA Insurance (NRMAI), in December 2024 for non-disclosure of demerit point loading on over 48,000 CTP renewal policies, and the incorrect application of demerit point loading on over 21,000 CTP renewal policy premiums, from October 2018.
NRMAI did not meet its obligations under the Motor Accident Injuries Act (the Act), the Motor Accident Guidelines and, consequently, NRMAI’s CTP insurer licence conditions. The breaches resulted in NRMAI failing to be transparent and provide accurate information, including relevant pricing factors, to customers on their CTP renewal policies.
SIRA determined that a civil penalty was appropriate under Section 9.10(1)(a) of the Act. While NRMAI has cooperated with SIRA and implemented corrective actions, including refunds to affected customers, the penalty reflects the serious nature of the breaches.
SIRA will continue monitoring NRMAI’s compliance closely and expects NRMAI to maintain robust controls to meet its regulatory obligations.
Further information
Updated 24 January 2025