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: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

What Rising Insurance Complaints Mean for Truck Operators

06 Aug 2026: Paige Estritori

The latest insurance complaint trends are a timely warning for Australian truck owners, owner-drivers and fleet operators: the quality of a policy matters, but so does the way a claim is handled once something goes wrong. Across the general insurance sector, complaints continue to point to recurring pressure points such as delays, disputed decisions, communication gaps and confusion about policy terms. - read more

Why AI dash cameras are becoming an insurance issue for truck fleets

05 Aug 2026: Paige Estritori

The latest fleet technology coverage points to a clear shift in Australian transport: AI-enabled dash cameras, telematics and connected maintenance platforms are moving from optional extras to everyday risk-management tools. For truck operators, the insurance implications are becoming harder to ignore. - read more

NSW Workers Compensation Pressure Puts Tradie Employers on Notice

05 Aug 2026: Paige Estritori

Fresh attention on New South Wales workers compensation pricing is a timely reminder that insurance costs are not moving evenly across Australia. While some trade employers in other states have recently gained breathing room, NSW businesses are still operating in a market where scheme sustainability, claims duration and workplace injury trends remain under scrutiny. - read more

What Genetic Testing Reform Could Mean for Income Protection Applicants

05 Aug 2026: Paige Estritori

Australia’s move to restrict the use of adverse genetic test results in life insurance underwriting is an important development for people who have been hesitant to explore personal cover. While the reform is usually discussed in relation to life insurance, it also matters for income insurance because many retail policies sit within the broader life insurance framework. - read more

Claims Handling Scrutiny Offers Income Protection Lessons

05 Aug 2026: Paige Estritori

Recent industry attention on insurance claims handling has put a practical issue back in front of Australian households: a policy is only as valuable as the support it provides when a claim is made. For income protection insurance, that moment often arrives during illness, injury, stress and reduced cash flow, so clear communication and timely assessment matter enormously. - read more

Click for more Insurance News

Business Insurance Articles

Proven Strategies for Slashing Your Business Liability Insurance Costs

Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - 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 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

How Public Liability Insurance Can Save Your Business During a Crisis

Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more

Public Liability Insurance for Events: What Organizers Need to Consider

Public liability insurance is a type of coverage designed to protect businesses and individuals from the financial fallout associated with claims for injury or damage caused to third parties. It is particularly crucial for event organizers, who are responsible for ensuring the safety and security of attendees, vendors, and participants. - read more

Start Here !

Knowledgebase

Moral Hazard:
The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.

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.

Missed Insurance Coverage Turns Costly for Long-Time Client

Missed Insurance Coverage Turns Costly for Long-Time Client

Share this news item:

Start here!