Motor Accident Injuries Act 2019

The MAI commission may impose a financial penalty on a licensed insurer if the commission—

has given the insurer a show cause notice; and

has considered any written submission given by the insurer in accordance with section 394C (2) (d); and

has considered the matters prescribed by regulation; and

is satisfied that—

a ground for financial penalty exists in relation to the insurer; and

the imposition of the financial penalty is—

in the public interest; and

appropriate taking into account the nature of the contravention.

A financial penalty must not be more than—

for a minor contravention—$20 000; or

for a serious contravention—$100 000.

If the MAI commission imposes a financial penalty on a licensed insurer, the commission must give the insurer a notice (a financial penalty notice) stating—

that the commission has decided to impose a financial penalty on the insurer; and

the amount of the financial penalty; and

the grounds on which the penalty is being imposed; and

that the notice is a financial penalty notice under this section; and

for a serious contravention—that the insurer may request a mediation under section 394E if the insurer disagrees with the financial penalty; and

that the penalty must be paid to the MAI commission in accordance with section 394F.

In this section:

show cause notice—see section 394C (2).