SIRA clamps down with new conditions on self-insurer

Review identifies failures in injury management, payments, and notices

SIRA clamps down with new conditions on self-insurer

Workers Compensation

By Roxanne Libatique

The State Insurance Regulatory Authority (SIRA) has imposed special licence conditions on Dimeo Group Holdings’ workers compensation self-insurer licence after an audit found compliance issues in its claims management processes. The conditions came into effect on Feb. 18, following a claims management audit conducted under section 202A of the Workers Compensation Act 1987. The audit examined whether Dimeo’s workers compensation activities as a self-insurer were being conducted in accordance with legislative requirements. According to SIRA, the review identified instances of non-compliance in several areas. These included how injury notifications were received and processed, the development and use of injury management plans, the determination of weekly payments, and the issuing of notices required to be provided to workers.

Under the special conditions, Dimeo must implement a remediation plan approved by SIRA and complete the actions in that plan within agreed time frames. The company is also required to put in place a quality assurance program to monitor the effectiveness of the remediation work and its broader claims management compliance and performance. Dimeo must provide SIRA with monthly quality assurance reports and written updates on the status of remediation. These reports are due by the 15th day of each month and will continue until SIRA advises that the additional reporting is no longer required. SIRA has stated that it is monitoring Dimeo’s performance and compliance with the conditions attached to its self-insurer licence.

Thomas Foods remains under special licence conditions

The action against Dimeo follows the announcement about earlier measures taken against Thomas Foods International Consolidated, which has been operating under special licence conditions on its workers compensation self-insurer licence since Aug. 31, 2025. SIRA audited Thomas Foods under section 202A of the Workers Compensation Act 1987 to assess whether its workers compensation activities as a self-insurer met legislative obligations. The audit identified non-compliance relating to weekly payment obligations and injury management planning.

In response, SIRA imposed conditions requiring Thomas Foods to follow a remediation plan approved by the regulator and to carry out that plan within specified time frames. The company must maintain a quality assurance program intended to track the effectiveness of the remediation measures and its overall claims management compliance and performance. Thomas Foods is required to submit monthly quality assurance reports to SIRA, outlining remediation actions taken and any changes to its practices. In addition, the self-insurer must provide monthly remediation progress updates within 10 business days of the end of each month, until SIRA considers the remediation plan to be complete. SIRA continues to oversee Thomas Foods’ compliance with these requirements.

Workers compensation actions form part of wider regulatory activity

The licence conditions on Dimeo and Thomas Foods form part of a broader pattern of regulatory activity in the New South Wales workers compensation scheme, as described in SIRA’s quarterly regulatory update for the period Oct. 1 to Dec. 31, 2025. In that quarter, SIRA reported that it imposed special licence conditions on one workers compensation insurer and commenced six new remediation plans with self and specialised insurers. Employer compliance activities during the same period resulted in the recovery of more than $3.5 million in unpaid workers compensation premiums, increasing premium revenue and associated worker coverage within the scheme.

SIRA’s quarterly update states that these activities are guided by its Regulatory Priorities 2025-26, which SIRA says focus on scheme design, accountability of regulated entities, and results for people who use the schemes. The data in the update is reported as correct as of Dec. 31, 2025. The recent actions indicate continued regulatory attention to claims handling practices, documentation standards, and the timeliness of statutory decision-making. The conditions on Dimeo and Thomas Foods include structured remediation plans, ongoing reporting obligations, and quality assurance requirements, signalling closer scrutiny of compliance performance within the self-insurance segment.

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