As of 1 October 2015 it is a mandatory requirement for all solicitors in NSW to disclose to the State Insurance Regulatory Authority (SIRA) a costs breakdown upon the finalising of a motor accidents claim.
The CTP insurer informs the SIRA of the settlement or completion of the claim and then the SIRA makes a demand for a costs breakdown from the solicitor acting for the injured person.
SIRA has stated that the key purpose of collecting this data is to provide SIRA with a better understanding of the costs to the motor accidents scheme and the amounts received by claimants so the SIRA can monitor the efficiency of the motor accidents scheme.
Solicitors for injured persons are required to set out the amount of professional costs incurred by the solicitor or firm, medical report fees, expert fees, barrister’s fees, filing fees and any other disbursements incurred in prosecuting the claim for the injured person.
Adams & Partners Lawyers welcomes this development. The motor accidents scheme is for the benefit of persons injured in motor accidents. This development should assist in the SIRA ensuring that persons injured in motor vehicle accidents receive their proper entitlements.