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In an era dominated by digital innovation, understanding the crossroads of cybersecurity and indemnity insurance is more critical than ever for IT professionals. As cyber threats evolve with increasing sophistication, the concept of cyber liability has come into sharp focus, pinpointing the potential legal and financial risks associated with data breaches and cyber-attacks that professionals in the information technology sector may face. - read more
Professional Indemnity Insurance (PII) remains one of the keystones of risk management for professionals across Australia. Yet, misconceptions and lack of awareness can lead to inadequate coverage, leaving individuals and businesses vulnerable in a litigious environment. - read more
If you're an Australian consultant, you understand that your advice is a valuable commodity. But with that value comes responsibility, and a level of risk that you could be held liable if your guidance results in financial loss to a client. This is where professional indemnity insurance comes into play, serving as a vital shield, providing protection and peace of mind for both you and your clients. - read more
Antique Car Claim Hits the Brakes: Home Insurance Does Not Cover Vehicle Damage
Antique Car Claim Hits the Brakes: Home Insurance Does Not Cover Vehicle Damage
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In an intriguing turn of events, a dedicated car enthusiast's claim for damages to his vintage vehicle under home insurance has been denied after a careful review by the Australian Financial Complaints Authority (AFCA).
The individual's relic, a 1970 Mercedes-Benz 280e sedan, which was being lovingly restored and was far from operational, rolled into an adjacent van following the snap of a winch cable.
The car owner had filed for the losses with his insurer, Allianz, under the impression that the stationary state of his classic automobile placed it outside the category of a motor vehicle, which would typically be excluded from home insurance coverage. The claim also included potential legal liabilities related to the damage inflicted upon the neighbor's property.
However, Allianz stood firm on the grounds of their policy, which explicitly excludes motor vehicles, setting the stage for AFCA’s involvement to help settle the matter. The authority consulted both dictionary and legal definitions during its adjudication to arrive at a conclusion.
The decision was crystal clear. Although the prized Mercedes was not road-ready, it was undeniably a car, designed for motor propulsion and fit for highway use. Conclusively, for all intents and purposes regarding the claim, the car was classified as a motor vehicle.
Additionally, the authority addressed the aspect of legal liability, stating that while it may have been a legitimate claim, the insurance policy in question conveniently draws a line, omitting any claims connected to the ownership or operation of a 'mechanically propelled vehicle.'
The underlying fact, as pointed out by AFCA, was that any car functions through mechanical propulsion, dovetailing with its design intent. Thus, the Mercedes, regardless of its non-functional state, was subject to the same rules, exempting the legal liability concerns from the policy's scope of coverage.
Despite the setback for the claimant in terms of coverage, AFCA noted an oversight by the insurer during its claims process. Allianz overlooked the policyholder's legal liability concerns without due consideration, an error that led to frustration and inconvenience for the customer. In light of this, AFCA has ruled that Allianz compensate the claimant with AUD 1,000 for non-financial losses sustained as a result of the claim handling process.
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A notable Australian consumer group insists for a revision of the cyclone insurance framework to achieve better parity among affected regions. Before its scheduled review, the proposed recalibration looks to distribute fiscal pressures more evenly among Australians, possibly extending the burden of cost to regions historically less affected by cyclones, such as Sydney. - read more
An investigation into Victoria’s extreme flood impact reveals prolonged distress due to insurance obstacles. The Legislative Assembly's examination brings forth issues with claim resolutions and coverage gaps as critical barriers in recuperation after the devastation of October 2022. - read more
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