MAA Abolished

.As a consequence of reform to the NSW Workers Compensation Scheme, there have been two significant changes to the NSW CTP insurance scheme.

The Motor Accidents Authority (MAA) was abolished, effective from 1 September 2015. Functions of the MAA will transfer to a new Authority, the State Insurance Regulatory Authority (SIRA).

Another new organisation, Insurance & Care NSW (icare) will be the service provider for the Lifetime Care and Support Authority.

Background

At the 2015 election, the NSW Government said it would review the NSW Workers Compensation Scheme.

Following that review, it put legislation in place to reform the scheme.

The reforms aim to provide a fairer, customer focused, efficient and sustainable workers compensation scheme.

The reforms deliver through:

1. Improved benefits for injured workers;
2. Reduced premiums for good employers; and
3. Establishment of three new organisations, separating regulation from delivery of NSW insurance and compensation services.

Some say there is a conflict of interest when regulation and delivery of services is controlled within one organisation.  The establishment of the new organisations aims to remove that conflict by separating those functions.  All existing NSW state insurance and compensation organisations will be consolidated into one of the new organisations.

The Motor Accidents Authority and the Lifetime Care and Support Authority are part of that consolidation.

Structural reform

The State Insurance and Care Governance Act 2015 commenced on 1 September 2015.

The Act creates the three new organisations, which are:

1. Sate Insurance Regulatory Authority (SIRA).  SIRA is a regulator, acting as the independent regulator for all NSW insurance schemes.  Separate organisations such as the MAA and WorkCover Authority are abolished and replaced by SIRA.  In respect of the CTP insurance scheme, the Act provides that SIRA will have the same functions as the MAA.  Those functions are as set out in the Motor Accidents Compensation Act 1999 and the Motor Accidents Act 1988.
2. Insurance and Care NSW (icare).  icare is the care and service provider, responsible for delivery of insurance, compensation, health and rehabilitation services to injured people.  icare will be the service provider for the Lifetime Care and Support Authority and for other bodies such as the Dust Diseases Authority.
3. SafeWork NSW.  The workplace health and safety regulator, to reduce workplace accidents and improve workplace safety.

A second piece of legislation, the Workers Compensation Amendment Act 2015 sets out the improved benefits for injured workers.  The commencement date for that Act is yet to be proclaimed by the Government.

SIRA

SIRA will be part of the Better Regulation Division in the Department of Finance and Services, reporting to the Minister for Innovation and Better Regulation.

Even though the MAA has been abolished from 1 September 2015, SIRA, the replacement Authority has the same functions as the MAA.

We will update the News and content on this website as the transition to SIRA becomes clearer.

Information on this website is still relevant. It is based on applying relevant Acts and Guidelines, which have not changed at this stage. The only diference affecting information on this website is the name change from the MAA to SIRA.

If you require additional information, do not hesitate to Contact Us.