---
title: "Response to an insurer's denial of liability"
url: "https://ailawframework.com/precedents/personal-injury-and-compensation/response-to-denial-of-liability"
type: "precedent"
site: "AI Law Framework"
id: "a21-response-to-denial-of-liability"
area_id: "A21"
kind: "letter"
ai_level: "yellow"
version: 1
task_ids: ["A21-T1-R13", "A21-A20260923-2", "A21-WR20261022-10"]
law_stated_as_at: "2026-10-23"
---

# Response to an insurer's denial of liability

> A letter identifying an insurer's denial, stating the facts the client disputes, asking for reconsideration, and listing documents still missing.…

Canonical page: https://ailawframework.com/precedents/personal-injury-and-compensation/response-to-denial-of-liability  
Law stated as at: 2026-10-23

Site index for agents: https://ailawframework.com/llms.txt

A letter identifying an insurer's denial, stating the facts the client disputes, asking for reconsideration, and listing documents still missing. It points to the statutory review that may also be running, and it is not that review.

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Personal Injury & Compensation](https://ailawframework.com/precedents/personal-injury-and-compensation.md)
- Jurisdictions: Victoria, Queensland, New South Wales
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-23
- Status: Maintained. Checked on 2026-10-23 against the 9 authorities it cites, for Victoria, Queensland and New South Wales.

## When to use it

Use when an insurer has denied liability or rejected a claim and the firm wants a reasoned reconsideration before, or at the same time as, a statutory review. Do not use it as the review application, the Transport Accident Commission form, or a Personal Injury Commission application.

## Used for these tasks

- [Draft correspondence to the insurer or scheme agent](https://ailawframework.com/practice/personal-injury-and-compensation/draft-correspondence-to-the-insurer-or-scheme-agent.md)
- [Draft a letter of demand or particulars of injury from the schedule](https://ailawframework.com/practice/personal-injury-and-compensation/draft-a-letter-of-demand-or-particulars-of-injury-from-the-schedule.md)
- [Record the time to ask for reconsideration of a compensation determination](https://ailawframework.com/practice/personal-injury-and-compensation/record-the-time-to-ask-for-reconsideration-of-a-compensation-determinati.md)

## How AI may be used

The lawyer and the tool draft the response from the denial and the instructions, and the lawyer checks each disputed fact and whether a statutory time limit is still open before it is sent.

**AI may:**

- Set out the denial date and the reasons the notice actually gave
- List only the facts the instructions dispute, in the client's words
- Name the statutory review and its deadline in the paragraph for that scheme, without drafting the review itself

**AI must not:**

- Must not add a threat, a costs claim, or a deadline that is not in the instructions or the statute
- Must not call this letter an internal review, a Regulator application, or a tribunal application
- Must not concede contributory negligence, fraud, or a pre-existing condition unless the lawyer has instructed that
- Must not mark the letter without prejudice unless the lawyer has decided it contains a negotiating concession

**The lawyer checks:**

- Every disputed fact is in the instructions or a document the lawyer has read
- The scheme paragraph matches the denial, and the review deadline is diarised separately
- The letter is open correspondence unless the lawyer has a reason to mark it without prejudice
- Draft only in the firm's approved tool. In Victoria and New South Wales, do not disclose confidential client information without authority under Australian Solicitors' Conduct Rules r 9.2.1. A Queensland solicitor checks the local conduct rules.
- If client information leaves the approved environment, check APP 11 and whether there is an eligible data breach under the Privacy Act notifiable data breach scheme.

## Authorities

- [SIRA, Motor Accident Guidelines Part 7, cll 7.4 and 7.5 (internal review within 28 days of notice; a later request may be declined)](https://www.sira.nsw.gov.au/resources-library/motor-accident-resources/publications/for-professionals/motor-accident-guidelines/part-7-of-the-motor-accident-guidelines)
- [Motor Accident Injuries Act 2017 (NSW) s 7.9 (which insurer decisions may be internally reviewed; the review does not stay the decision)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/maia2017245/s7.9.html)
- [Workplace Injury Management and Workers Compensation Act 1998 (NSW) s 287A (a worker may request a review before the dispute is referred to the Commission; the insurer notifies the result within 14 days)](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/nsw/consol_act/wimawca1998540/s287a.html)
- [Workers' Compensation and Rehabilitation Act 2003 (Qld) s 542 (time for an application for review)](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/qld/consol_act/wcara2003400/s542.html)
- [TAC, Reviewing a TAC decision (informal review form within 12 months of becoming aware; the informal review does not stop that period)](https://www.tac.vic.gov.au/clients/how-we-can-help/treatments-and-services/policies/other/reviewing-a-tac-decision)
- [SIRA, Work capacity decision reviews (a worker who disagrees with a work capacity decision may go to the Personal Injury Commission without first using the insurer review), updated 19 December 2024](https://www.sira.nsw.gov.au/claims-assistance/workers-compensation-disputes/work-capacity-decision-reviews)
- [Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 r 9 (confidentiality of client information)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0244)
- [OAIC, Australian Privacy Principles guidelines, Chapter 11 (APP 11: reasonable steps to protect personal information from misuse, interference, loss, and unauthorised access, modification or disclosure)](https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-guidelines/chapter-11-app-11-security-of-personal-information)
- [OAIC, Data breach preparation and response, Part 1 (Notifiable Data Breaches scheme in Privacy Act 1988 (Cth) Part IIIC: notify individuals and the Commissioner of an eligible data breach)](https://www.oaic.gov.au/privacy/notifiable-data-breaches/preventing-preparing-for-and-responding-to-data-breaches/data-breach-preparation-and-response/part-1-data-breaches-and-the-australian-privacy-act)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/personal-injury-and-compensation/response-to-denial-of-liability and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*