Insurance Australia trading as NRMA Insurance v Liu

The case involved Insurance Australia, trading as NRMA Insurance, and Liu, a claimant for motor accident injuries. The dispute centered on the decision of the President’s delegate of the Personal Injury Commission of NSW to arrange for a medical assessment to be referred to a review panel. Liu sought a review of the decision on the grounds that the delegate failed to provide reasons for her decision, and that this constituted a jurisdictional error. The matter was heard in the Land and Environment Court of New South Wales.

The primary legal issues were whether the President’s delegate was required to provide reasons for her decision under rule 78 of the Personal Injury Commission Rules 2021 (NSW), and whether the failure to provide such reasons constituted a jurisdictional error. The Court also considered whether the failure to provide reasons denied Liu procedural fairness and whether the Court should exercise its discretion to dismiss the summons.

The Court found that the President’s delegate was indeed required to provide reasons for her decision under rule 78. The Court emphasised that the President’s role included a “gateway function,” and that this function required clear articulation of the basis for any decision. The Court noted that the reasons provided by the delegate did not address the specific question asked of her, thereby establishing a jurisdictional error. The Court rejected the argument that Liu was denied procedural fairness, as the error was based on the reasons that were given, rather than on the process itself. The Court concluded that the decision was quashed and the matter was remitted to the Personal Injury Commission for reconsideration.

The final orders of the Court were that the decision of the President’s delegate be quashed, the matter be remitted to the Personal Injury Commission for reconsideration in accordance with the Court’s reasons, and each party bear their own costs of the proceedings.