SIRA looks at icare processes for Metricon

The State Insurance Regulatory Authority (SIRA) is looking at icare processes in relation to home building compensation cover and construction company Metricon.

icare Home Building Compensation Fund (HBCF) provides cover when a builder is unable to complete a residential project or return to rectify defects. As part of the process builders have to apply for eligibility before the purchase of a certificate of insurance, with financial performance and equity exposed to the building operations among criteria taken into account.

“SIRA as part of its normal regulatory functions is closely reviewing the application of the eligibility model in regards to Metricon,” a spokesman told insuranceNEWS.com.au. “SIRA is working with icare and once the review is completed SIRA will provide feedback to icare.”

The Australian reported last week that icare is being investigated for potentially breaking rules by allegedly accepting assets held by Metricon company directors as surety for construction projects.

The financial position of Metricon has been questioned after the sudden death of its founder and CEO amid challenging industry conditions. Company owners have said it remains profitable and viable and they are putting additional capital into the business as a demonstration of their commitment to its future.

icare says it cannot comment on a particular builder due to confidentiality obligations and it underwrites all builders in line with their eligibility guidelines.

“Eligibility guidelines are reviewed and accepted each year by SIRA,” a spokeswoman told insuranceNEWS.com.au.

“icare continues to receive updates from Metricon on their position as they navigate necessary changes following the death of founder and chief executive Mario Biasin.”

In other regulatory matters, SIRA has been notified by icare of a privacy breach that occurred in the week of May 10.

icare says employer cost of claims reports were sent to the wrong employer or broker in a mistake attributed to human error related to manual processing.

The insurer says it took immediate action to rectify the matter as soon as it was made aware of the incident, and has been working with the Information and Privacy Commissioner NSW and third-party IDCARE to contact those who received the wrong reports and to confirm they have deleted the information.

“icare takes its privacy obligations seriously and understands the important role we play in safeguarding the information we hold about injured works,” the insurer says. “We are strengthening our controls to improve our safety measures.”