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MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 88A
Commission’s power to intervene to establish information processing systems
88A Commission’s power to intervene to establish information processing
systems
(1) This section applies if— (a) the commission, by written notice given to
a licensed insurer, requires the insurer to establish, within the reasonable
time stated in the notice, systems for the processing and transmission of
information that comply with specified reasonable requirements; and
(b) the
insurer fails to comply with the requirement within the stated time.
(2) The
commission may engage contractors to establish the required systems for the
processing and transmission of information and authorise them to enter the
licensed insurer’s premises when the premises are open for business to carry
out the necessary work.
(3) The licensed insurer must— (a) allow an
authorised contractor access to the insurer’s premises and facilities for
the purpose of establishing the required systems for the processing and
transmission of information; and
(b) must, at the request of an authorised
contractor, provide cooperation and assistance the contractor reasonably needs
to carry out the work effectively.
Penalty— Maximum penalty—150
penalty units.
(4) The commission may recover the cost of work carried out
under this section as a debt from the licensed insurer.
(5) A court that
convicts a licensed insurer of an offence against this section may, by order,
withdraw the licence.
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