Motor Accident Injuries (Premiums and Administration) Amendment Regulation 2023 (No 1) (ACT)

Motor Accident Injuries (Premiums and Administration) Amendment Regulation 2023 (No 1)

Subordinate Law SL2023-37

The Australian Capital Territory Executive makes the following regulation under the Motor Accident Injuries Act 2019.

Dated 12 December 2023.

ANDREW BARR

Chief Minister

CHRIS STEEL

Minister

Motor Accident Injuries (Premiums and Administration) Amendment Regulation 2023 (No 1)

Subordinate Law SL2023-37

made under the

Motor Accident Injuries Act 2019

1. Name of regulation

   This regulation is the Motor Accident Injuries (Premiums and Administration) Amendment Regulation 2023 (No 1).

2. Commencement

   This regulation commences on the day after its notification day.

   NoteThe naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

3. Legislation amended

   This regulation amends the Motor Accident Injuries (Premiums and Administration) Regulation 2019.

4. New section 26

   insert

5. Financial penalties—matters that must be considered—Act, s 394D (1) (c)

   (1)The MAI commission must consider the following matters before deciding to impose a financial penalty on a licensed insurer in relation to conduct of the insurer that constitutes a ground for financial penalty:

   (a)any adverse effect, or likely adverse effect, of the conduct on the insurer’s payment of any amount to which a person is entitled, including the payment of defined benefits or an award of damages to a person in a proceeding related to a motor accident claim;

   (b)any adverse effect, or likely adverse effect, of the conduct on a person’s recovery from a personal injury sustained as a result of a motor accident;

   (c)whether the insurer reported the conduct to the MAI commission;

   (d)any action taken by the insurer to—

   (i)investigate the nature and extent of the conduct; and

   (ii)remediate the conduct; and

   (iii)remove or mitigate the risk of similar conduct happening;

   (e)whether the conduct was caused, or likely to have been caused, by a failure of the insurer’s systems or procedures;

   (f)whether the insurer has contravened—

   (i)a direction given to the insurer under the Act, section 394G (Directions to licensed insurers—general) in relation to the conduct or any similar conduct; or

   (ii)a direction given to the insurer under the Act, section 394I (Directions to licensed insurers—remediation plans) in relation to the conduct or any similar conduct; or

   (iii)a remediation plan approved under the Act, section 394I (5) (a) in relation to the conduct or any similar conduct;

   (g)any effect, or likely effect, of the conduct on the insurer, including—

   (i)any adverse effect, or likely adverse effect, on public confidence in the insurer; and

   (ii)any effect, or likely effect, on the operation of the insurer’s business as an MAI insurer; and

   (iii)any financial implications, or likely financial implications, for the insurer;

   (h)any adverse effect, or likely adverse effect, of the conduct on competition between MAI insurers;

   (i)any adverse effect, or likely adverse effect, of the conduct on the operation of the Act;

   (j)any adverse effect, or likely adverse effect, of the conduct on public confidence in the operation of the Act;

   (k)any similar conduct, including—

   (i)whether the insurer reported the similar conduct to the MAI commission; and

   (ii)any action taken by the insurer to—

   (A)investigate the nature and extent of the similar conduct; and

   (B)remediate the similar conduct; and

   (C)remove or mitigate the risk of further similar conduct happening;

   (l)any other matter the MAI commission considers relevant.

   (2)In this section:

   similar conduct means any conduct of the licensed insurer that is the same as or similar to the conduct constituting the ground for financial penalty.

Endnotes

1. Notification

   Notified under the Legislation Act on 14 December 2023.

2. Republications of amended laws

   For the latest republication of amended laws, see align="center">© Australian Capital Territory 2023