Insurance Australia Group Ltd t/as NRMA Insurance v Welsh

The respondents, who were insured with the appellant, suffered injuries in a motor accident. The appellant reviewed the medical certificate and refused to refer the matter to a review panel for reconsideration of the certificate. The respondents sought a judicial review of the appellant's decision, contending that the certificate did not clearly state the degree of permanent impairment attributable to the accident. The respondents argued that the appellant had failed to conform with regulatory requirements and had made an error of law on the face of the record. The court was required to determine whether the appellant's decision was reviewable and whether it had made an error of law in deciding not to refer the matter to a review panel.

The court found that the appellant's decision was reviewable and that there was an error of law on the face of the record. The appellant had failed to conform with regulatory requirements by not referring the matter to a review panel when the medical certificate did not clearly state the degree of permanent impairment attributable to the accident. The proper officer ought to have suspected that the certificate was incorrect in a material respect, and therefore, the certificate and decision were set aside and the matter was remitted to the appellant for reconsideration. The court emphasised the importance of following regulatory requirements and the need for proper officers to exercise their discretion carefully when deciding whether to refer a matter to a review panel.

The court ordered that the decision of the appellant be set aside and the matter be remitted to the appellant for reconsideration. The appellant was directed to refer the matter to a review panel for reconsideration of the medical certificate and to make a new decision in accordance with the law and the regulatory requirements. The court also noted that the respondents were entitled to costs on an indemnity basis. The decision provides guidance to insurers and proper officers on the importance of following regulatory requirements and exercising discretion carefully when reviewing medical certificates in motor accident cases.