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
Source: Paige Estritori

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

Share this news item:

Insurance News

Leadership Transition at NTI: Janelle Greene Named New CEO

13 Feb 2026: Paige Estritori

National Transport Insurance (NTI), Australia's premier transport and logistics insurance provider, has announced the appointment of Janelle Greene as its new Chief Executive Officer, effective July 1. Greene, who currently serves as NTI's Chief Customer Officer, will succeed Tony Clark, who has led the company for the past 18 years. - read more

Decade-Long Battle Ends in TPD Payout for Injured Truck Driver

13 Feb 2026: Paige Estritori

In a significant ruling by the Australian Financial Complaints Authority (AFCA), a truck driver has been awarded a total and permanent disability (TPD) benefit, concluding a protracted dispute that spanned over a decade. - read more

NHVR's Revised Master Code: Broader Safety Guidelines for Heavy Vehicle Users

13 Feb 2026: Paige Estritori

The National Heavy Vehicle Regulator (NHVR) has recently updated its Master Code of Practice, marking the first revision since its initial release in 2018. This comprehensive update extends its reach beyond traditional road transport businesses to encompass a wider array of industries that utilise heavy vehicles, including manufacturing, construction, mining, retail, and logistics. - read more

AFCA Upholds Policyholder's Income Protection Benefits Against Zurich

12 Feb 2026: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently ruled against Zurich Insurance, instructing the insurer to maintain the current income protection benefits for a policyholder after an 11-year delay in proposing a reduction. This decision underscores the critical importance of timely and transparent communication between insurers and their clients. - read more

Neos Recognized as Leading Income Protection Insurer in 2025

12 Feb 2026: Paige Estritori

In the 2025 Life Insurance Awards presented by Money Magazine, Neos has been honored as the top provider in the Income Protection Insurance category. This accolade reflects Neos's commitment to delivering comprehensive and reliable income protection solutions to Australians. - read more

Click for more Insurance News

Business Insurance Articles

Understanding The Costs: How Much Does Public Liability Insurance Typically Cost?

Public liability insurance is a crucial form of protection for both businesses and individuals, safeguarding them against potential claims for personal injury or property damage that occur as a result of their operations or services. In an increasingly litigious society, having this coverage can mean the difference between staying afloat financially and facing business closure due to unexpected claims. - read more

Understanding Liability Insurance: A Must-Read for Australian Business Owners

As a business owner in Australia, navigating the complexities of insurance is crucial to safeguard your enterprise against unforeseen events. Liability insurance emerges as a cornerstone of a sound risk management plan, protecting you financially when held responsible for accidents, injuries or negligence. Its importance cannot be understated, as it serves not only to defend your business assets but also to ensure peace of mind in a climate of continually evolving liabilities. - 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

The Smart Business Approach: How to Effectively Compare Public Liability Insurance Rates

Running a business comes with inherent financial risks. Whether you own a small café or a large construction company, unforeseen incidents can lead to significant financial losses. - read more

Start Here !

Knowledgebase

Claim:
A formal request made by the policyholder to the insurance company for payment of a loss covered by the insurance policy.

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.