C2026A00066NDIS Checker

Schedule 2, Part 2

The insurer's own 7 day notification duty

An insurer that receives an Agency notice about a claim must tell the CEO in writing within 7 days of becoming liable to indemnify, or of receiving the notice if that is later, or it contravenes a civil penalty provision. A compensation payer that is not an insurer has a parallel duty.

What does the provision require?

Section 110 previously created an offence for a potential compensation payer who did not tell the CEO about a compensation liability. Item 52 adds two civil penalty provisions. Subsection 110(3) applies to a potential compensation payer that is given a notice under section 109(1) and later becomes liable to pay compensation. Subsection 110(4) applies to an insurer that receives a section 109(2) notice about a participant's or prospective participant's claim and later becomes liable to indemnify the compensation payer, wholly or partly.

In both cases the duty is to write to the CEO about the liability inside 7 days of becoming liable, or inside 7 days of receiving the notice, whichever is later. The penalty is 60 penalty units. Item 74(4) of Schedule 2 applies subsection 110(4) only where both limbs are met: the insurer is given the section 109(2) notice from 27 August 2026, and the insurer becomes liable from that date. A notice given before 27 August 2026 is outside the civil penalty even if the liability arises later.

Why does it matter to an insurer or a provider?

This is the clearest duty in the Act that lands on an insurer in its own name. Seven days is shorter than most delegated authority reporting cycles, and the trigger is knowledge of liability, not payment. The duty sits beside the existing offence, so a failure can be pursued criminally or civilly. The practical control is a diary item created when the section 109 notice is received, not when the claim is accepted.

What did the amendment change?

The offence remains, and a civil penalty is added for the same conduct. The 7 day period is stated in the provision rather than left to the offence wording. The new subsection 110(4) puts the duty on an insurer directly, which the earlier offence provision did not do in terms.

Suggested evidence

These are the publisher's control suggestions, not statutory requirements. The provision's own requirement is above; an auditor or regulator decides what is sufficient.

  • The section 109 notice, with the date it was received
  • The date the insurer became liable to indemnify and the source of that knowledge
  • The written notice sent to the CEO, with its date and the method of sending
  • The diary entry created at notice receipt, showing the 7 day deadline
  • The delegated authority agreement where a third party handles the claim

What should be done before the date?

  1. Create the 7 day diary at the moment a section 109 notice is received
  2. Send the notice from a monitored mailbox and keep the transmission record
  3. Add the duty to the delegated authority and MGA reporting schedule
  4. Test one live claim end to end against the clock

What the text does not say

The text does not prescribe a form for the notice to the CEO. It does not say what must be included. It does not extend the period for a delegated authority, so the insurer remains responsible for a handler's delay.

Where this sits

subsections 110(3) and 110(4), inserted by item 52 in Schedule 2, Part 2, Civil penalties and regulatory powers (item 52, with the application rule at item 74(4)). Read the official text at https://www.legislation.gov.au/C2026A00066/latest/text. The record was read on 21 October 2026.

Not legal advice; does not certify. This page is a reading of the provision in our own words, not a reproduction of it, and not advice on your own facts.

Provisions that travel with this one

Other duties commencing on the same day