Under NSW law, Compulsory Third Party (CTP) insurers must maintain records when delaying statutory benefits, including payment of interest. Claimants should document evidence to support their case. This article explains the legal requirements, types of records to keep, and steps to take when insurers fail to pay on time.
Legal Requirements for CTP Insurers
The Motor Accident Injuries Act 2017 (MAIA) governs CTP claims in NSW. Section 4.4 of the Act specifies that insurers must pay statutory benefits, including interest, when payments are delayed. While the MAIA does not explicitly outline record-keeping rules, SIRA guidance confirms that insurers must retain evidence of payment schedules, correspondence, and financial calculations. This includes records of when payments were due, delays, and any interest accrued.
Types of Evidence to Keep
Claimants should preserve documents that prove the insurer’s delay and the financial impact. Key records include:
- Payment schedules or letters confirming due dates
- Correspondence with the insurer about payment delays
- Medical records showing the injury’s impact on income
- Bank statements or income records to calculate lost earnings
- Evidence of the insurer’s failure to meet statutory deadlines
These records help demonstrate that the insurer’s actions (or inaction) caused financial harm. For example, if an insurer delays a weekly income payment, the claimant must show how the delay affected their finances.
Practical Steps for Claimants
If an insurer delays payment, claimants should:
- Request written confirmation of payment dates and reasons for delays.
- Keep all communication with the insurer, including emails and letters.
- Track financial impacts by documenting lost income and additional expenses.
- Seek independent advice if the insurer refuses to pay interest or disputes the claim.
Time Limits and Dispute Options
NSW law imposes time limits for CTP claims, typically 52 weeks for certain benefits. However, interest on delayed payments may accrue beyond this period. If an insurer fails to pay interest, claimants can:
- Lodge a complaint with SIRA
- Apply to the NSW Civil and Administrative Tribunal (NCAT) for a review
- Seek legal advice to pursue compensation for financial loss
When to Seek Legal Advice
Claimants should consult a solicitor if:
- The insurer disputes the claim or refuses to pay interest
- Payments are delayed beyond the statutory deadline
- There are disputes over the amount of interest owed
Legal professionals can help claimants understand their rights under the MAIA and ensure insurers comply with their obligations.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.