Insurer’s obligation of prompt payment
90 Insurer’s obligation of prompt payment
An insurer commits an offence if—
the insurer receives written notice requiring payment for the provision of a service; and
the insurer is required under this Act to pay for the service; and
the insurer fails to pay the person who provided the service (the service provider) for the service not later than 30 days after the day the insurer receives the notice.
Maximum penalty: 10 penalty units.
Subsection (1) does not apply if—
the insurer does not pay for the service because the insurer has reasonable grounds to believe that the service has not been provided, or has not been properly provided; and
the insurer has told the service provider, in writing, why the insurer has not paid for the service.
An offence against this section is a strict liability offence.
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