Liability Insurance Australia :: News

Share this news item!

Missed Insurance Coverage Turns Costly for Long-Time Client

⚠️The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a challenging outcome for a long-standing customer, a car owner has faced rejection in his bid for damage compensation after it was established that his insurance coverage had been terminated over five years before the incident.

The episode came to light following a collision on April 26. When the man sought compensation from IAG, the insurance provider refuted the claim, identifying that his policy officially lapsed without renewal on April 8, 2019.

The customer contended he hadn't received any reminders or notifications regarding the renewal lapse. Emphasizing his loyalty, he mentioned his impressive track record of 18 years as a customer who consistently managed renewals punctually.

IAG countered his assertion by pointing to their records, which indicated that a renewal statement demanding a premium of $1036 had been broadcast among a massive batch of 11,163 documents for processing on March 9, 2019. Verification revealed the dispatch took place between March 11 and March 12, followed by Australian postal deployment on March 13.

Referring to a critical legislative factor, IAG underlined that the Insurance Contracts Act of 1984, through section 58, mandates at least 14 days' notice for renewal. Despite this, the legislation stipulates a cover ceiling of up to 12 months even where renewal communications falter - a window far exceeded in this scenario.

Evaluating the dispute, the Australian Financial Complaints Authority (AFCA) noted that under the Evidence Act 1995, the expectation was for the mail to reach its destination by March 22 - equating to a seven-day post from mail lodgment to receipt and allowing the customer ample grace before the renewal deadline.

AFCA further confirmed the absence of any refutation from the customer regarding this mailing timeline, reinforcing the lack of convincing testimony related to possible mail service disruptions impacting the delivery within his locality.

"The policy became void due to non-renewal five years preceding the claimed damages," affirmed AFCA. "A notional statutory policy, even if hypothetically existent, would have surpassed expiration over four years before the documented loss. Thus, no legitimate or statutory policy substantiation ties to IAG for the claim in question."

This case taps into the broader importance of consumers vigilant about policy end dates and renewal communications, spotlighting a harsh reality faced by the consumer after years of prior satisfactory engagement with the insurer.

Published:Monday, 9th Dec 2024
Author: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Significant Decline in Australian Commercial Insurance Rates

25 Mar 2026: Paige Estritori

In the final quarter of 2025, Australian commercial insurance rates experienced a substantial decline of 12%, marking the most significant drop among the eight regions monitored by Marsh Risk's Global Insurance Market Index. This trend reflects a broader pattern of decreasing rates that began in early 2024, with the Pacific region, predominantly Australia, leading the way. - read more

Human Factors Dominate Causes of Major Truck Crashes in Australia

25 Mar 2026: Paige Estritori

The National Truck Accident Research Centre's 2025 Major Incident Investigation Report, supported by NTI, has identified human error as the predominant cause of major truck crashes in Australia. The report indicates that factors such as inattention, distraction, and inappropriate speed account for a significant proportion of these incidents. - read more

ASIC Launches Review into Motor Insurance Pricing Practices

25 Mar 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has initiated a comprehensive review into the accuracy and transparency of motor insurance pricing among major insurers, covering approximately two-thirds of the car insurance market. This investigation aims to ensure that insurers comply with legal disclosure requirements and provide clear explanations for premium calculations. - read more

AIA Australia's Latest Enhancements to Priority Protection Insurance

24 Mar 2026: Paige Estritori

AIA Australia has recently updated its Priority Protection life insurance suite, introducing changes designed to simplify discounts, enhance policy clarity, and support premium affordability. These enhancements, effective from 9 November 2025, reflect AIA's commitment to providing value-driven solutions for policyholders. - read more

Australia's Life Insurance Coverage Falls Short of Global Standards

24 Mar 2026: Paige Estritori

Recent findings from a survey conducted by Zurich and the University of Oxford reveal that Australia has one of the lowest life insurance penetration rates globally. The study indicates that only 27% of Australians have income protection insurance, and 25% possess life insurance coverage. These figures are notably lower than the global averages of 33% for income protection and 32% for life insurance. - read more

Click for more Insurance News

Business Insurance Articles

Key Benefits of Comparing Public Liability Insurance Rates for Australian Businesses

As an Australian business owner, you face numerous financial risks daily. Accidents can happen at any time, whether it's a slip and fall on your premises or damage caused by your products or services. These incidents can lead to costly legal actions that may put significant strain on your business finances. - read more

Understanding the Role of Public Liability Insurance in Business Disaster Planning

For Australian business owners, planning for unforeseen disasters is not just prudent; it's an essential aspect of sustaining operations amidst challenges. Recognizing the importance of comprehensive strategies, including robust insurance cover, can make all the difference in business longevity and legal protection. As we navigate the complexities of running a business, it's imperative to have a safeguard against mishaps that could otherwise jeopardize our hard-earned success. - read more

The Importance of Public Liability Insurance in the Australian Labour Hire Industry

The Australian labour hire industry has seen a significant rise in recent years, and with this growth, comes new and unique risks that companies in this industry must be prepared to navigate. One such risk is the potential for accidents or damages to occur in the workplace, which is where public liability insurance comes in. This article will explore the definition of public liability insurance and why it is so important for labour hire companies in Australia. - read more

The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need?

As a business operating in Australia, understanding the ins and outs of public liability insurance is not just recommended, it's essential. This type of insurance serves as a safeguard, protecting your business against the financial repercussions of lawsuits and claims arising from third-party injuries or property damage due to your business operations. In a world where one unintended mishap can lead to costly legal battles, public liability insurance stands as your first line of defense. - read more

Common Myths About Public Liability Insurance Debunked

Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more

Start Here !

Knowledgebase

Subrogation:
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.