SIRA issues Letter of Censure to NRMA Insurance for delays in determination of treatment requests
1 February 2024
SIRA has issued a Letter of Censure to Insurance Australia Limited trading as NRMA Insurance (NRMAI) following investigations into delays in responding to requests for treatment and care in the motor accidents scheme.
SIRA’s investigation found delays when responding to treatment and surgery requests in 7 CTP claims.
In failing to determine and respond to the claimant’s treatment requests within 10 days of receipt, NRMAI contravened section 1.3(2) and section 10.7 of the Motor Accident Injuries Act 2017, Clauses 4.5, 4.6 and 4.98 of the Motor Accident Guidelines (v.8.2), and Clause 10 of NRMAI’s CTP insurer licence conditions.
On 19 May 2023 and 20 June 2023 SIRA issued two show cause notices to NRMA Insurance requesting a response to the investigation findings.
NRMA Insurance confirmed acceptance of the findings and advised that they have undertaken an appropriate remediation and performance management actions. In addition, SIRA has independently verified that NRMAI now have systems in place to ensure substantial, sustained compliance against these requirements.
Following consideration of the results of the investigation, and submissions by NRMA Insurance, SIRA decided the appropriate enforcement action in this instance was to issue a Letter of Censure.