Drew v QBE Insurance Australia – Local Court of NSW 2020/0012731
Interestingly a worker issued a Court Attendance Notice on QBE with respect to its failure to determine a claim in accordance with the Workplace Injury Management and Workers’ Compensation Act 1998. QBE admitted they were guilty, and the matter was listed for sentencing before Magistrate Price on 14 May 2020.
In light of same, the Court could have issued QBE with a fine of up to $5,500 in an effort to deter this behaviour in future. However, the worker and QBE agreed that the matter should be dealt with by way of a dismissal under s 10 (1) (a) of the Crimes (Sentencing Procedure) Act to which his Honour agreed was fair, reasonable and appropriate in the circumstances.
His honour stated: “It is important that insurers do comply with their statutory obligations. Insurance companies, particularly of the magnitude of QBE, play a very important role, not only in the Australian economy but also in society at large. And they play a beneficial role predominantly, but when they do digress, as they have in this matter, it is important that the courts send a clear message that that type of conduct cannot be condoned and so general deterrence is important.”
Whilst QBE did not receive a fine, the Court did order them to pay Court costs in the sum of $1,250.
It is important to remember the majority of workers will not need to resort to local Court proceedings, but it is reassuring that these safeguards are in the workers compensation legislation in an effort to ensure insurance companies comply with their statutory obligations when handling claims.
If you would like to know more about your rights regarding workers compensation as an independent contractor, we would be pleased to speak with you to advise you about your options. You can either book an appointment online or call us on (02) 4050 0330 to arrange an obligation-free consultation.
