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 homeowner’s request for compensation after discovering a large pit on his property was denied when it was revealed to be a decommissioned well, rather than a sinkhole.
The deep pit, which measured 4.5 meters, appeared beneath pavers just 1.5 meters away from the house in August 2022.
The homeowner contacted QBE insurance to lodge a claim, prompting the insurer to send a team to cordon off the affected area for safety.
The homeowner argued that the pit had been formed by a leaking pipe and believed the visible water flow at the bottom was evidence of such. He suggested that the water leak had caused soil erosion, exacerbating the formation of the pit.
In response, QBE appointed a forensic structural engineer to investigate. The engineer, assisted by a plumber, conducted several tests and authored three reports on their findings.
The investigation concluded that the pit resulted from the collapse of a well capping that had been in place for over five decades, predating the home's construction according to the neighborhood residents' accounts.
According to the engineer, the old well capping had eroded over time, explaining the presence of water at the base. Nearby sewer and stormwater pipes were examined, and it was found that water flow into the pit had been consistent. A sewer pipe leakage, identified approximately 19 meters from the pit, was determined to be too far away to contribute to its formation.
No legal or physical connection was determined to link the sewer leakage or any nearby pipes to the well's deterioration. The plumber validated the engineer's conclusions, confirming a lack of nearby pipe networks capable of forming a sinkhole.
The Australian Financial Complaints Authority (AFCA) later ruled in favor of QBE, citing comprehensive evidence provided by the engineer. The findings firmly established that the pit was a disused well, lacking any evident links to a leaking sewer or other leaks.
AFCA endorsed, "The expert evidence substantiates that the pit originates from a long-decommissioned well existing before the complainant’s house was built. Despite extensive testing, the results indicate no connection between any pipe leaks and the pit’s formation, the water at its base, or the erosion observed."
Though QBE did agree to compensate for incidental damages done during the examination process, including $1122 for the damage to the homeowner’s timber deck and an additional $1500 for the delays in processing the claim, which took over six months.
This case, initially reported by insurancenews.com.au, underscores the critical role of thorough expert investigation to differentiate between naturally occurring subsidence and structural failures caused by other factors.
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.
A fresh Australian Government vehicle recall for selected Isuzu MY25 trucks is a timely reminder that modern heavy vehicle risk is no longer limited to tyres, brakes, steering, driver behaviour or road conditions. Software faults can also create safety exposures that matter for fleet operations, incident investigations and insurance conversations. - read more
A federal parliamentary inquiry into small business insurance has pushed its reporting timetable into early 2027, extending the wait for recommendations that may shape future debate on affordability, availability and regulation. For Australian tradespeople, the delay matters because the inquiry is examining the commercial insurance lines many small operators rely on daily, including public liability, professional indemnity, cyber risk and business interruption cover. - read more
A new Life Code Compliance Committee inquiry has put fresh attention on the way life insurers manage longer-running income protection insurance and total and permanent disability claims, finding that clearer communication and earlier information requests could reduce avoidable stress for people waiting on claim decisions. - read more
A fresh safety recall affecting 3,710 Isuzu MY25 trucks is a timely reminder that modern truck insurance risk is not only about driver behaviour, road conditions or workshop servicing. Software, trailer systems and electronic braking signals can all become part of the evidence trail if an incident occurs. - read more
Australia’s life insurance sector is moving into a detailed debate over how mental health conditions should be treated in disability-style cover, and the outcome could matter for business owners who rely on insurance to protect income, debt and operational continuity. - read more
Liability insurance is not automatically mandatory for every Australian business, but it can be required by law, licence conditions, contracts, leases, tenders, professional rules or event permits. This guide explains when cover may be compulsory and how to check your obligations. - read more
Public liability insurance can help protect event organisers from the financial impact of third-party injury or property damage claims. In Australia, venues and councils may ask for proof of cover before an event can proceed, so it is important to understand how this insurance works and what to consider when arranging it. - read more
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
Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more
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
Start Here !
Knowledgebase
Proximate Cause: The primary cause of loss in an insurance claim, which sets in motion a chain of events leading to the damage or injury.
No comments yet. Be the first to share your thoughts.