Uninsured Driver Denied Compensation in Dispute with QBE

2

The uninsured motorist, disputing QBE's decision to hold him responsible and requiring payment for damages, sought redress through AFCA. He claimed the QBE-insurer's customer triggered the incident by stopping abruptly, without warning, following the fire truck's activation of sirens and lights.

Despite lacking dashcam footage, AFCA reviewed a Queensland Fire Department statement suggesting the distraction and subsequent collision were foreseeable due to the fire truck's presence at a blind corner. Although acknowledging that the QBE customer was potentially negligent for stopping suddenly without adequate warning, AFCA maintained the road rules require drivers to maintain a safe distance to prevent such accidents.

The adjudication concluded that a sufficient following distance was lacking, which could have otherwise allowed the uninsured driver to avert the collision, rendering the complaint unsubstantiated for coverage of his damages. Consequently, the tribunal found him responsible for a portion of the crash alongside the QBE-insured driver.

The ruling bars the uninsured from receiving compensation for his vehicle damage, legal fees, or money paid to QBE, citing jurisdiction limits. Yet, it mandated QBE to issue a $500 compensation for originally misleading the uninsured driver with incorrect statements regarding cost bearing.

Published:Friday, 21st Mar 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

Call for Stricter Timelines on Insurance Claims and Renewals 06 May 2025: Paige Estritori The Insurance Brokers Code Compliance Committee is advocating for significant changes to improve transparency and clarity in their industry standards, amidst ongoing reviews of the National Insurance Brokers Association (NIBA) code. This call to action coincides with the recent closure of feedback collection from stakeholders, setting the stage for a draft report expected next month. - read more

Insurers Under Scrutiny for Response to Alfred Flood Claims 05 May 2025: Paige Estritori In a recent development, Queensland MP David Lee has raised concerns about how insurance companies are addressing claims following the devastating floods caused by Ex-Tropical Cyclone Alfred. Businesses in Hervey Bay, a region heavily impacted by the floods, report facing significant hurdles in having their damage claims recognized. - read more

AFCA Rules Against Engine Theft Coverage in Motor Policy Dispute 04 May 2025: Paige Estritori An applicant's attempt to claim insurance coverage after the theft of an engine designated for his 1993 Nissan Skyline has been denied. Despite holding a comprehensive motor policy with IAG, the insured's claim was rejected after multiple engines were stolen in a brazen ram-raid at his vehicle repairer's workshop in November 2023, prompting an appeal to the Australian Financial Complaints Authority (AFCA). - read more

ACCC Strengthens Position Against Broker Commissions 02 May 2025: Paige Estritori In a recent submission to the professional code of practice review, the Australian Competition and Consumer Commission (ACCC) has reiterated its position against broker commissions. Echoing findings from its 2020 Northern Australia Insurance Inquiry, the ACCC advocates for extending the ban on conflicted remuneration to include brokers. - read more

Partial Settlement Reached in Homeowner's 'Slow Leak' Insurance Dispute 01 May 2025: Paige Estritori A recent ruling by the Australian Financial Complaints Authority (AFCA) has determined that Auto & General Services must cover a portion of a homeowner's insurance claim related to long-term water damage caused by a leaking pipe. The decision comes after a protracted dispute regarding the coverage of damages arising from a leak that reportedly developed over 12 months, spanning both before and during the insurance policy period. - read more