FOLLOW US
Follow us!

We are a proud member of the Financial Services Online network!

Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.

Follow us on social media
Liability Insurance Australia
Australian liability insurance resources
Liability Insurance Australia :: News
SHARE

Share this news item!

Insurer Rejects Claim Over Diesel Fluid Mix-Up

Insurer Rejects Claim Over Diesel Fluid Mix-Up

Insurer Rejects Claim Over Diesel Fluid Mix-Up?w=400

⚠️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.

A contentious insurance claim has ended unfavourably for a motor policyholder after her husband mistakenly poured diesel exhaust fluid into her car's fuel tank.
Although the policyholder initially received assurances from a Suncorp representative that the use of AdBlue fluid wouldn't be considered improper fuelling - supposedly an excluded scenario under her policy - the claim was later denied.
This decision has sparked debate around policy definitions and customer service communication.

The policyholder argued that according to the product disclosure statement (PDS), only "incorrect fuel usage" was excluded, and as AdBlue is technically not a fuel, her claim should be valid. Additional grievances arose after alleging the insurer’s tow service inflicted further damage to her car, necessitating a new steering rack and wheel realignment.

Suncorp acknowledged the issue with its initial claim rejection, where the decision was based solely on the original PDS. However, the insurer pointed to a supplementary product disclosure statement (SPDS), which explicitly excludes coverage for damage resulting from using fluids not recommended by the vehicle's manufacturer. This key differentiation was reportedly communicated to the policyholder during her policy renewal.

The Australian Financial Complaints Authority (AFCA) sided with Suncorp, determining that the insurer did not mislead the customer about her claim status. While Suncorp admitted to referencing outdated PDS wording initially, AFCA deemed their reliance on the updated SPDS appropriate and found no obligation for the insurer to cover the incident. Additionally, AFCA found limited evidence to support the policyholder's accusations regarding damage caused by the towing service, reinforcing Suncorp's account of a winched, non-dragged vehicle recovery.

Despite these rulings, AFCA ordered Suncorp to compensate the policyholder $3000 for delay-induced inconveniences during the claim process, which left her without her vehicle for an extended period, citing the resulting undue stress and hassle.

This case highlights the importance of clear communication and understanding of policy amendments, emphasizing the role supplemental documents play during insurance assessments. Consumers are reminded to review documentation thoroughly during renewals to grasp the full scope of their insurance protections and exclusions.

Published:Wednesday, 16th Apr 2025
Source: Paige Estritori

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

Share this news item:

Insurance News

AIA Australia Introduces Enhancements to Priority Protection Life Insurance
AIA Australia Introduces Enhancements to Priority Protection Life Insurance
28 Feb 2026: Paige Estritori
AIA Australia has announced significant updates to its Priority Protection life insurance suite, effective from 9 November 2025. These enhancements are designed to simplify discounts, improve policy clarity, and support premium affordability for policyholders. - read more
Decline in Life and Income Protection Insurance Premiums Benefits Australians
Decline in Life and Income Protection Insurance Premiums Benefits Australians
28 Feb 2026: Paige Estritori
Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more
Club Marine Launches Land-Based Insurance for Race Boats
Club Marine Launches Land-Based Insurance for Race Boats
28 Feb 2026: Paige Estritori
Club Marine, Australia's leading boat insurance provider, has expanded its offerings to include land-based insurance coverage for race boats. This initiative is designed to support participants in the Australian Offshore Superboat Championship (AOPC) by providing protection for their vessels while on land. - read more
Pantaenius Australia Offers New 90-Day Lift Cover for Boat Maintenance
Pantaenius Australia Offers New 90-Day Lift Cover for Boat Maintenance
28 Feb 2026: Paige Estritori
Pantaenius Australia, a specialist in marine insurance, has introduced a 90-day lift cover policy designed to provide boat owners with third-party liability insurance while their vessels are out of the water for maintenance or survey purposes. - read more
Australians File Record 111,373 Financial Complaints in 2025
Australians File Record 111,373 Financial Complaints in 2025
28 Feb 2026: Paige Estritori
In 2025, Australians lodged a record 111,373 complaints with the financial watchdog, marking a 14% increase from the previous year. This surge underscores growing consumer dissatisfaction and challenges within the financial services sector. - read more
Click for more Insurance News


Business Insurance Articles

 Why Every Business Needs Public Liability Insurance
 Why Every Business Needs Public Liability Insurance
Welcome to our comprehensive guide on public liability insurance. If you run a business, you've probably heard this term thrown around quite often. But what exactly is public liability insurance? - read more
How Public Liability Insurance Can Save Your Business During a Crisis
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
5 Tips for Reducing Your Liability Insurance Premiums in Australia
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?
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
Key Benefits of Comparing Public Liability Insurance Rates for Australian Businesses
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


Start Here !
Your free liability insurance quote comparison starts here!
Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Term Life Insurance:
A type of life insurance policy that provides coverage for a specified period, such as 10 or 20 years.



Quick Links: | Liability Insurance Australia | Public Liability Insurance | Professional Indemnity Insurance | Business Liability Cover | Small Business Liability Insurance | Liability Insurance For Trades | Liability Insurance Quote | Corporate Liability Insurance | Liability Insurance For Professionals | Best Liability Insurance Australia
| HOME | RATES | CALCULATORS | NEWS | ARTICLES | ABOUT | CONTACT | PRIVACY | BROKERS | AFFILIATES | SITEMAP |
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.
powered by Financial Services Online | Copyright Clark Family Pty Ltd A.C.N. 010 281 008 - all rights reserved
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.