Section 6.21 — Motor Accident Injuries Act 2017 (NSW)

(1) If an insurer denies liability (whether for part or all of a claim), the Commission may, in assessing costs on the claim, impose a costs penalty under this section if the Commission is of the opinion that there was no reasonable basis for the denial of liability.
(2) There is considered to be a reasonable basis for a denial of liability only if the denial was based on provable facts and a reasonably arguable view of the law.
(3) The costs penalty that may be imposed on an insurer under this section is a penalty of up to 25% (imposed by increasing the costs to be awarded against the insurer, or decreasing the costs to be awarded in favour of the insurer, by up to 25%).
(4) In this section, costs means costs for the provision of legal services (including disbursements).

Related sections

• s 6.18 — Power of insurer to intervene in legal proceedings
• s 6.19 — Acceptance of liability for claim for statutory benefits
• s 6.20 — Duty of insurer with respect to admission or denial of liability in claim for damages
• s 6.22 — Duty of insurer to make offer of settlement on claim for damages
• s 6.23 — Restrictions on settlement of claim for damages
• s 6.24 — Duty of claimant to co-operate with other party

Research how courts apply s 6.21

BriefBridge searches NSW and High Court caselaw by meaning — every answer cited to the paragraph.