Maytom-Rollason v Insurance Australia Limited trading as NRMA

The plaintiff in this case sought damages for a motor vehicle accident. The insurer, Insurance Australia Limited trading as NRMA, disputed the claim. The dispute was heard by the Supreme Court of New South Wales. The central issue before the court was whether the insurer had properly rejected the explanation provided by the plaintiff pursuant to section 73(7) of the Motor Accidents Compensation Act 1999 (NSW). The plaintiff had provided a short explanation with the claim form, and the insurer had responded with a covering letter but did not formally reject the explanation within the statutory period. The court was required to determine whether the insurer's failure to formally reject the explanation within the required timeframe constituted a failure to reject it at all.

The court found that the explanation provided by the plaintiff, although brief, was sufficient to warrant a formal response from the insurer. The covering letter from the insurer, which acknowledged the claim and the explanation, constituted an initial step towards the formal rejection process. However, the court held that the failure to follow up with a formal rejection within the statutory period meant that the insurer had not effectively rejected the explanation as required by the legislation. The court reasoned that while the covering letter was an appropriate initial response, it did not substitute for the formal rejection required by the Act. Consequently, the court found that the insurer's failure to reject the explanation within the statutory period meant that the explanation was not properly rejected.

The court dismissed the notice of motion brought by the insurer. It ordered that the insurer pay the plaintiff’s costs of the motion. Additionally, the court mandated that the parties participate in a mediation process to be completed by 14 December 2018. The matter was scheduled for a hearing in the sittings commencing on 18 March 2019. This decision underscores the importance of following statutory requirements precisely in the context of motor vehicle accident claims under the Motor Accidents Compensation Act 1999 (NSW).