Summary: NRMA Insurance is repaying motorists after incorrect garage-location risk ratings inflated green slip charges by about $12.17 million across an estimated 41,564 policies. The NSW State Insurance Regulatory Authority has imposed a $479,500 penalty covering that breach and seven other matters involving compulsory third-party insurance customers.
An old operating system failed to update some premiums when customers changed addresses, ABC News reports. Sydney metropolitan vehicles attract the highest district rating, while other districts generally pay less. The insurer says it identified and reported the problem itself, and is making remediation payments with interest.
The regulator also wants further assessment of more than 600,000 policies for potential errors in other discounts. Separate findings include about $660,000 in missed discounts between April 2024 and November 2025. NRMA Insurance says its new technology platform will help prevent similar problems. It operates separately from motoring organisation NRMA, and has not disclosed the period covered by the postcode errors.
Sources:
• Abc: NRMA Insurance fined $500,000 by regulator for overcharging NSW drivers for green slips
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