The State Insurance Regulatory Authority (SIRA) has recorded its first custodial sentence for fraud under New South Wales’ Compulsory Third Party (CTP) Scheme, in a matter involving falsified income documentation provided to a CTP insurer. On Feb. 26, 2026, the Downing Centre Local Court sentenced claimant Sunny Arora to 16 months in prison, with a non‑parole period of five months, after he pleaded guilty to one count of fraud relating to conduct between November 2023 and January 2024.
According to SIRA, the offence involved 12 counterfeit documents, including payslips and an Australian Taxation Office payment summary, submitted to CTP insurer GIO. The documents were used to support a claim that Arora had suffered a loss of earnings following a motor vehicle crash, making him eligible for weekly CTP payments to which he was not entitled. The court ordered Arora to repay $12,786.62 to GIO and $5,896 to SIRA for professional costs. With time already served, he was released on parole on March 6, 2026.
Arora’s partner, Shania Vikash, who identified herself as a passenger in the same crash, was separately found guilty of defrauding the CTP scheme. On Feb. 10, 2026, she received a 12‑month Community Correction Order. The court ordered her to repay $37,246 to GIO for weekly benefits paid between November 2023 and July 2024, and $6,747 to SIRA for professional costs. SIRA said Vikash’s claim related to statutory benefits and that she had not suffered a loss of earnings as a result of the collision. She fabricated payslips and made false declarations in Certificates of Fitness to obtain weekly payments.
The Arora and Vikash matters form part of a series of CTP fraud prosecutions brought by SIRA since 2024, many of which concern misstatements about work capacity, employment status, and earnings. In October 2024, SIRA prosecuted claimant Tina Pour‑Zahrouni under section 6.41 of the Motor Accident Injuries Act 2017 (NSW). She claimed she was unable to work following a crash and received $55,698.06 in benefits from GIO while employed full‑time. She admitted the conduct and agreed to repay $40,457.06. The court imposed a 12‑month Intensive Correction Order, a $1,100 fine, and $6,203.03 in prosecution costs.
On May 8, 2025, SIRA obtained a conviction against Issa Abid under section 192E of the Crimes Act 1900 (NSW) for dishonestly obtaining payments by deception. Abid submitted false certificates and declarations to a CTP insurer stating he was unemployed, while he continued working. He received $135,166.01 in weekly loss‑of‑income benefits, which were repaid before sentencing. The court imposed a 12‑month Intensive Correction Order, ordered $12,620.49 in prosecution costs and directed him to provide fingerprints to police.
On Nov. 6, 2025, Zheng Liang was prosecuted under section 192E(1)(b) of the Crimes Act for falsely representing that he was unable to work, despite being employed, and receiving $4,853.41 in CTP compensation. He was given a 15‑month Community Corrections Order and ordered to pay $6,000 in professional costs. On Nov. 13, 2025, Rajbir Singh was convicted under section 6.40 of the Motor Accident Injuries Act 2017 (NSW) for making a false and misleading statement to a CTP insurer. The Local Court imposed a $1,000 fine and $4,000 in professional costs.
In a more recent matter, CTP claimant Moeed Ghauree was sentenced on Feb. 25, 2026, in the Local Court under section 6.40(c) of the Motor Accident Injuries Act for conduct between November 2023 and January 2024. The offence related to three Certificates of Fitness submitted to QBE in which he stated he had not worked during the relevant periods. Surveillance evidence showed he had been working as a security guard at the time. Ghauree was placed on a 12‑month Community Correction Order commencing Feb. 25, 2026, and ordered to pay $5,000 to SIRA for professional costs. The sentence is under appeal in the District Court on the question of severity.
SIRA has stated that, from January 2024, there have been 11 prosecutions related to fraud or non‑insurance, with further matters before the courts or under investigation. The authority has also introduced an online reporting form, available since July 2025, which allows members of the public to lodge anonymous reports of suspected fraud in the personal injury schemes. In a statement, SIRA chief executive Mandy Young said: “Insurance fraud is a serious form of dishonesty in a system that was built to protect the people in NSW. Fraud costs NSW businesses and motorists millions of dollars each year and places an unfair burden on those who do the right thing. SIRA has strengthened its enforcement capability, is forging stronger regulatory partnerships, and enhanced investigative practices. As we ramp up our focus on detecting and responding to fraud, the public can expect to see a significant increase in regulatory actions including prosecutions, penalty notices, and recoveries for fraud.”
