Time for payment by insurer of assessed amount of damages
22 Time for payment by insurer of assessed amount of damages
For the purposes of section 95(2A) of the Act, an insurer must pay an assessed amount of damages to the claimant concerned within 20 business days of the claimant’s communication of acceptance of the assessment.
Despite subclause (1), if an insurer is required by law to make a deduction from the assessed amount of damages payable to the claimant, the insurer must—
notify the person to whom the deduction is payable, and
request advice as to the amount of the deduction that is required from the person to whom the deduction is payable within 10 business days of the claimant’s communication of acceptance of the assessment, and
on receipt of that advice, pay the balance of the assessed amount of damages to the claimant within 20 business days of the date of the advice or, if deductions are payable to more than 1 person, within 20 business days of the receipt of all advice from those persons relating to the assessed amount of damages.
Interest is payable by the insurer on so much of the assessed amount of damages as remains unpaid after the end of the relevant period for payment of the assessed amount of damages.
The rate of interest is 75% of the rate prescribed for the purposes of section 101 of the Civil Procedure Act 2005 for the period concerned.
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