Duty of insurer with respect to admission or denial of liability in claim for damages
(cf s 81 MACA) (1) When a claim for damages is made, the insurer must as expeditiously as possible give notice to the claimant in accordance with the Motor Accident Guidelines as to whether the insurer admits or denies liability for the claim. The insurer must in any event give that notice within 3 months after the claim is made. (2) If the insurer admits liability for only part of the claim, the notice is to include details sufficient to ascertain the extent to which liability is admitted. (3) If an insurer admits fault in respect of a claim but fails to admit any other element of liability, the insurer is not considered to have admitted liability for the claim. (4) If the insurer fails to comply with this section, the insurer is taken to have given notice to the claimant wholly denying liability for the claim. (5) Nothing in this section prevents an insurer from admitting liability after having given notice denying liability or after having failed to comply with this section. (6) It is a condition of an insurer’s licence under this Act that the insurer must comply with this section.
Sourced from the New South Wales Legislation website at 9 June 2026. For the latest information on New South Wales Government legislation please go to https://www.legislation.nsw.gov.au. Verify the current text against the official source before relying on it.
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