AFCA Supports RAA Insurance in Vehicle Location Dispute
AFCA Supports RAA Insurance in Vehicle Location Dispute
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.
An insurance dispute over the location of a vehicle culminated in the Australian Financial Complaints Authority (AFCA) backing RAA Insurance in their decision to deny a claim.
The issue surrounded the policyholder's claim that her son’s car was stored in South Australia, while the vehicle was allegedly used and registered in Victoria.
The son, who initially filed the claim following an accident in April of the previous year, saw his claim denied by RAA Insurance. The insurance provider, based in South Australia, concluded that the vehicle was a total loss but rejected the claim after discovering the car's purchase and registration in Victoria despite frequent visits to South Australia.
During the claims process, the son portrayed himself as the primary driver, asserting minimal use by his mother, the policyholder. However, he later altered his statements to AFCA, stating that the car was never his and was unregistered in Victoria. AFCA found these new assertions unconvincing due to the lack of documentation supporting his position.
The ombudsman involved in the dispute stated that evidence indicated the vehicle was mainly used, registered, and stored in Victoria at the time the policy was taken out. Consequently, it was determined that the policyholder misrepresented the car's usual location and storage when securing insurance coverage.
RAA Insurance referenced their underwriting standards, emphasizing that they do not extend coverage to vehicles registered outside South Australia or the Broken Hill postcode. A declaration from an RAA employee supported this position, confirming that the vehicle’s Victorian registration would have led to denial of coverage initiation.
AFCA observed that such misrepresentation compromised RAA's risk assessment capabilities, justifying the insurer's decision to decline the claim. The omission of accurate information about the vehicle's storage location led to the policy being issued under false pretenses. AFCA concluded that compelling the insurer to honor the claim would be unjust, given the circumstances.
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.
Australia's construction sector continues to face pressure, with recent business reporting again pointing to elevated insolvency risk among builders and related operators. For tradespeople, that is not just a headline about another company's balance sheet. A builder collapse can quickly become a practical problem for subcontractors who have materials on site, tools locked in a compound, unpaid invoices, unfinished work and unclear responsibility for damaged or abandoned projects. - read more
Australia’s engineered stone ban and continuing regulator focus on silica exposure are more than a workplace safety issue for builders, renovators, tilers, stonemasons, plumbers, electricians and demolition contractors. They also create a practical insurance checkpoint for any trade business that cuts, drills, grinds, removes or works around dust-generating materials. - read more
Fresh industry attention on insurance affordability is more than a household budget story. For Australian tradespeople, rising premiums, higher repair costs and uneven disaster exposure can flow directly into how clients fund work, how projects are scoped and how small trade businesses protect their own equipment, vehicles and liability risks. - read more
Australian tradies, including plumbers, electricians, builders and carpenters, face risks that can vary widely by trade, worksite and equipment. Tailored insurance is about matching cover to the practical risks of the work, rather than relying on a one-size-fits-all policy. - read more
Income protection and personal accident insurance can both help tradies manage time off the tools, but they work differently. This guide explains the key differences, what to check in a policy and how self-employed tradies can think about income cover. - read more
Public liability insurance is designed to protect businesses and tradespeople against legal costs and compensation claims for injury or damage to property by a third party. In layman's terms, it covers you if someone sues your business for damages. - read more
Knowledgebase
Insurance Premium: The periodic amount paid for the purchase of insurance.
No comments yet. Be the first to share your thoughts.