• SIRA NSW logo
    SIRA NSW logo
Close×

State Insurance Regulatory Authority (SIRA) NSW issued a $10,000 civil penalty to Insurance Australia Limited trading as NRMA Insurance (NRMA), in December last year 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.

NRMA 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 NRMA has cooperated with SIRA and implemented corrective actions, including refunds to affected customers, the penalty reflects the serious nature of the breaches.

SIRA indicated that it will continue monitoring NRMA’s compliance closely and expects NRMA to maintain robust controls to meet its regulatory obligations.

 

comments powered by Disqus