Begonja v Insurance Australia Limited ACN 000 016 722 Trading as NRMA Insurance (Motor Accident Injuries)

The case of Begonja v Insurance Australia Limited ACN 000 016 722 Trading as NRMA Insurance involved a dispute regarding the eligibility of the applicant for costs related to a claim for motor accident injuries. The case was heard in the Australian Capital Territory Civil and Administrative Tribunal (ACAT). The applicant had sought external review of an internally reviewable decision made by the respondent, which declined to cover the cost of an ultrasound for her left shoulder. The respondent subsequently reconsidered the decision and accepted the expense after obtaining additional medical records. The matter was brought before the ACAT to determine the issue of costs under section 198 of the Motor Accident Injuries Act 2017.

The primary legal issue before the ACAT was whether the applicant was entitled to costs despite the matter not proceeding to a final hearing. The respondent had argued for the dismissal of the application under section 32(1) of the ACT Civil and Administrative Tribunal Act 2008. The applicant contended that she was entitled to costs as per section 198(1) of the MAI Act. This section allows the ACAT to order a party to pay the costs of another party arising from an application for external review, provided certain conditions are met, including that the applicant made the application in good faith and had an arguable basis for the application.

The ACAT considered that the matter was effectively resolved before the tribunal, and as such, did not proceed to a final hearing. However, it recognised that the respondent could have reasonably obtained the evidence that led to the reconsideration had they made appropriate enquiries. The tribunal concluded that it was appropriate to make a costs order in this instance. It noted that the applicant had already presented an arguable basis for her application and that the matter had effectively been resolved by the respondent's reconsideration. The tribunal found that it was appropriate to order costs and directed the applicant to provide itemised details of the costs claimed within 14 days of the date of the orders. The matter was relisted for a hearing on the quantum of costs payable.

The tribunal's final orders required the applicant to file and serve itemised details of the costs claimed within 14 days from the date of the orders. The matter was relisted for hearing on the quantum of costs payable on 9 November 2021 at 9:00am. This allowed the tribunal to assess and determine the appropriate amount of costs to be awarded to the applicant.