The State Insurance Regulatory Authority (SIRA), Australia’s New South Wales insurance regulator, has imposed a civil penalty on QBE Insurance Australia for prolonged failures to pay treatment and care invoices under the state’s compulsory motor accident scheme, after an investigation found systemic compliance breaches spanning almost two years.
In a news release, SIRA said it had issued a A$32,600 (approx. US$22,500) penalty to the insurer under the Motor Accident Injuries Act 2017, following findings that QBE repeatedly breached statutory obligations and licence conditions governing treatment, rehabilitation, and care (TRAC) payments.
QBE has since paid the penalty and acknowledged the regulator’s findings. The insurer said it had addressed the non-compliances and implemented remedial actions following SIRA’s intervention.
QBE delayed payments to claimants and service providers between November 2023 and August 2025, which breached the Motor Accident Guidelines and customer service conduct standards, according to the regulator. The investigation found that the delays were not isolated incidents, but reflected persistent operational failures.
SIRA said the payment backlogs had tangible consequences for injured claimants, with some care providers withdrawing services after extended reimbursement delays, disrupting access to treatment and placing additional strain on both patients and providers.
The regulator also said previous remediation efforts by the insurer had failed to deliver timely and durable solutions, prompting the decision to escalate enforcement action.
“As the breaches were not isolated incidents and QBE’s remediation efforts have previously failed to achieve a timely solution, SIRA decided the appropriate enforcement action in this instance was a civil penalty, which has now been paid,” SIRA said.
The regulator added that the case underscored expectations that licensed insurers operating within the Compulsory Third Party scheme must meet statutory obligations to ensure the scheme’s objectives are delivered, including timely access to treatment and care for injured road users.
