Liability Insurance Australia :: News

Share this news item!

Insurer Rejects Claim Over Diesel Fluid Mix-Up

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 â€“ supposedly an excluded scenario under her policy â€“ 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 insurerâ€™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 While Suncorp admitted to referencing outdated PDS wording initially, AFCA deemed their reliance on the updated SPDS appropriate and found no obligation for the insurer to cover the incident.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
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 Electric Heavy Vehicles Mean for Truck Insurance

10 Sep 2026: Paige Estritori

Recent transport and fleet industry coverage continues to point to a steady increase in electric and low-emission heavy vehicles across Australian logistics operations. For many operators, the attraction is clear: quieter vehicles, lower tailpipe emissions, potential fuel savings and stronger alignment with customer sustainability targets. But the insurance conversation is now becoming more detailed than simply replacing a diesel truck with an electric one. - read more

Why the Latest Insurance Data Matters for Trade Businesses

10 Sep 2026: Paige Estritori

APRA’s latest quarterly general insurance statistics point to a market that is still under cost pressure, even as insurers continue to report stronger overall results than during the worst of the recent claims cycle. For Australian tradespeople, the headline is not simply whether insurers are profitable. The practical issue is how rising premiums, repair costs, reinsurance expenses and claims activity flow through to the price and availability of cover used every day on the tools. - read more

Advice Changes Could Make Income Cover Easier to Understand

10 Sep 2026: Paige Estritori

Australia’s financial advice reform agenda has taken another important step, with industry attention turning to how simpler, more accessible guidance could help consumers make better decisions about insurance. For workers who rely on income insurance or salary continuance cover, the issue is more practical than political: many people hold cover they do not fully understand until illness or injury forces them to test it. - read more

Why Battery Freight Is Becoming a Truck Insurance Issue

10 Sep 2026: Paige Estritori

Recent transport and insurance industry attention on lithium-ion battery safety is a timely warning for Australian truck operators. The issue is no longer limited to consumer products catching fire in homes or warehouses. Batteries now move through freight networks in tools, scooters, e-bikes, electronics, spare parts and energy storage equipment, and that creates a different risk profile for carriers, depots and subcontracted linehaul work. - read more

Seasonal Bushfire Risk Puts Farm Cover Back in the Spotlight

09 Sep 2026: Paige Estritori

Australia’s latest seasonal bushfire outlook is a practical reminder that fire risk is not confined to the height of summer. For many farms, the exposure begins well before a catastrophic fire day is declared, as grass growth, drying winds, stored fodder, machinery movement and access limitations combine to create a more complex risk profile than a standard rural home policy can address. - 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

Certificates of Currency for Liability Insurance: What Australian Contractors Should Know

A certificate of currency is commonly requested by clients, principals, site managers and tender panels as proof that a contractor's liability insurance is current. Here's what it usually shows, what it does not prove, and what Australian contractors should check before submitting one. - read more

Understanding the Key Factors Influencing Your Liability Insurance Premiums

Liability insurance is a form of coverage that protects businesses against claims resulting from injuries and damage to people or property. It provides crucial peace of mind, ensuring that your business is shielded from potentially devastating financial losses due to lawsuits or claims against it. - 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 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

Start Here !

Knowledgebase

Claim Adjuster:
An insurance professional who investigates and evaluates insurance claims to determine the amount the insurance company should pay.

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.

Insurer Rejects Claim Over Diesel Fluid Mix-Up

Insurer Rejects Claim Over Diesel Fluid Mix-Up

Share this news item:

Start here!