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SIRA censures QBE over CTP underpayment

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The NSW State Insurance Regulatory Authority (SIRA) has issued a letter of censure to QBE over the underpayment of 104 injured road users totalling $88,942.

In June, QBE itself notified the regulator of the issue but SIRA says while the insurer self-reported, it still breached its licence conditions and obligations under the Motor Accident Injuries Act 2017.

QBE discovered an indexation increase in weekly benefits commencing in April last year had not been paid to some customers with earning capacity impaired beyond 78 weeks from their accident. Three people were underpaid $5000-8500, and another 28 by over $1000 each.

QBE contacted all affected customers and told them of the error, and repayments were processed by July 20.

QBE has made changes to its system to prevent a recurrence of the underpayments.