The MAA is taking a holistic approach to the issues raised in the 2013 ‘Smalley’ decision of the Supreme Court, through a range of complementary changes to help support desired CTP scheme outcomes.
That Court decision changed some of the previous understandings about the requirements for making liability decisions by insurers, their impact, and their relationship to applications for exemption from assessment at CARS.
The holistic approach taken by the MAA includes new templates for insurers, workshops about liability decision making, revised Guidelines, supporting guidance material and ongoing monitoring and reporting by the MAA.
The changes also support the MAA’s current broad objectives to improve the operation of the current scheme by taking steps to minimise pressure on CTP premiums, improve scheme efficiency, shorten the tail and pay claimant benefits sooner, reduce claim friction points and disputation, and improve customer experience for the injured and the insured.
New ‘Claims Handling Guidelines’ and ‘Claims Assessment Guidelines’ have now been gazetted on 11 April 2014 and come into effect on 1 May 2014. The new versions of the Guidelines are now available on the MAA website. Click here.
What has changed?
There are only a small number of discrete changes that have been made to each of these Guidelines;
Claims Handling Guidelines
- The only substantive changes to the previous version of the Claims Handling Guidelines are new and amended provisions in clauses 5.4 to 5.9, under the headings ‘Section 81 Liability notices’ and ‘Other Liability decisions’.
- The rest of the Claims Handling Guideline provisions have not changed.
- The Claims Handling Guidelines will commence from 1 May 2014 and will replace the previous version issued on 1 October 2008 taking effect from that date.
Claims Assessment Guidelines
- The only substantive changes to the previous version of the Claims Assessment Guidelines are new and amended provisions in;
- The rest of the Claims Assessment Guideline provisions have not changed.
- The Claims Assessment Guidelines replace the 1 October 2008 version, and apply to all new applications received at CARS on or after 1 May 2014 and all matters current at CARS on or after that date that have not been determined, unless otherwise provided.
- The Guidelines do otherwise provide, specifically regarding the omission of former clause 8.11.2 (exemption of claims where >25% contributory negligence is alleged) which will apply only to applications received on or after 1 May 2014. The former clause 8.11.2 continues to apply to all applications received before 1 May 2014.