SIRA sets new conditions for Liberty's workers' compensation licence

Conditions imposed amid compliance concerns

SIRA sets new conditions for Liberty's workers' compensation licence

Insurance News

By Roxanne Libatique

Please note: Liberty Holdings Australia has no connection to the insurer Liberty Specialty Markets

The State Insurance Regulatory Authority (SIRA) has imposed specific conditions on the workers’ compensation self-insurer licence of Liberty Holdings Australia Limited (Liberty), in response to alleged deficiencies in the company’s management of self-insured workers’ compensation claims.

The decision follows an analysis of self-audit outcomes Liberty submitted over a two-year span, which revealed significant shortcomings in compliance and case management practices.

Liberty’s special licence conditions

Under the new stipulations, Liberty is mandated to strictly follow the corrective measures and improvements laid out in its Remediation Plan, which was presented to SIRA in November 2023, and complete these actions within the designated timelines.

In addition, Liberty is obliged to provide SIRA with monthly progress reports on the implementation of the plan, due within 10 business days after each month ends, until SIRA acknowledges that the plan has been satisfactorily executed.

Liberty must also persist in its quality assurance endeavours to ensure the Remediation Plan’s effectiveness and maintain compliance and performance in claims management. This includes the submission of monthly quality assurance reports to SIRA that detail the advancements in claims performance, also due within 10 business days following the month’s end.

What to expect from Liberty under new special licence conditions

The imposition of these conditions is not only limited to the current terms of Liberty’s Remediation Program but also applies to any future changes or expansions that SIRA approves in writing.

Should Liberty fail to demonstrate notable improvement in the execution of the Remediation Plan, SIRA may consider additional regulatory measures.

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