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

Suncorp Reaches Maximum Reinsurance Retention Following Severe Storms in Queensland and NSW

11 Dec 2025: Paige Estritori

Recent supercell thunderstorms in South East Queensland and northern New South Wales have led to a surge in insurance claims, prompting Suncorp to reach its maximum reinsurance retention of $350 million. The insurer has reported over 10,000 claims related to these events, with approximately half pertaining to home damages and the other half to motor vehicles. - read more

NTARC Report Identifies Inattention and Speed as Primary Factors in Major Truck Crashes

11 Dec 2025: Paige Estritori

The National Truck Accident Research Centre (NTARC) has released its latest Major Incident Investigation Report, highlighting inattention, distraction, and inappropriate speed as the most frequent human factors behind major truck crashes in Australia. While there has been a modest reduction in these incidents compared to previous years, they continue to pose significant risks to road safety. - read more

Rising Mental Health Claims Reshape Australia's Insurance Landscape

10 Dec 2025: Paige Estritori

The Australian insurance industry is witnessing a significant shift as mental health conditions have become the leading cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health issues now account for nearly one-third of all TPD claims, marking a substantial change in the industry's claim patterns. - read more

Australian General Insurers Achieve $6 Billion Profit Amid Fewer Natural Disasters

10 Dec 2025: Paige Estritori

In a remarkable turnaround, Australian general insurers have reported a combined profit of $6.1 billion over the past year. This substantial increase is attributed to a period of relative calm in natural catastrophes and robust investment returns. - read more

Australian Life Insurers Under Review for Mental Health Exclusion Practices

10 Dec 2025: Paige Estritori

Recent findings have revealed that certain Australian life insurers continue to implement blanket exclusions for mental health conditions, a practice that contravenes the industry's code of practice. This has raised significant concerns about the fairness and legality of such exclusions. - read more

Click for more Insurance News

Business Insurance Articles

Public Liability Insurance Claims: What to Expect and How to Prepare

Public liability insurance is a type of insurance policy that provides coverage for businesses and individuals against claims made by third parties for injuries or damages sustained while on their property or as a result of their activities. - 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

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

5 Tips for Reducing Your Liability Insurance Premiums in Australia

Liability insurance is a crucial form of protection that offers coverage against claims resulting from injuries and damage to people or property. Within the bustling landscape of Australian businesses, possessing this form of insurance is key to financial security and continuity. It acts as a safety net, ensuring businesses can manage risks without bearing the full brunt of potentially costly legal claims. - read more

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

Start Here !

Knowledgebase

Insurance:
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.

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.