The General Insurance Code Governance Committee has chosen the Northern Rivers Community Gateway charity as the beneficiary of a $50,000 sanction imposed on an insurer in June. 

The committee says it invited a range of organisations to be considered for the community benefit payment, and shortlisted candidates based on their work and impact. 

Northern Rivers Community Gateway started in 1976 and is dedicated to supporting disadvantaged people in Lismore and northern NSW.

It has undertaken extensive work helping communities affected by the 2022 floods. 

Allianz this year became the first general insurer to be hit with a financial sanction for a code of practice breach, with the issue relating to the handling of a claim from the February 2022 flooding.

The ability to enforce a financial penalty was introduced in the 2020 update of the code of practice, which is now being reviewed as part of a regular schedule. Currently, the maximum penalty is $100,000.

“Community benefit payments form an integral element in a sanction, offering tangible support to communities in addition to reinforcing accountability for insurers and strengthening trust in the regulatory oversight of the industry,” the governance committee said today.