Public Liability Insurance Online :: News
SHARE

Share this news item!

AFCA Ruling: Trucking Firm's Claim Invalid Due to Misrepresentation

AFCA Ruling: Trucking Firm's Claim Invalid Due to Misrepresentation

AFCA Ruling: Trucking Firm's Claim Invalid Due to Misrepresentation?w=400
A recent decision by the Australian Financial Complaints Authority (AFCA) has highlighted the importance of accurate disclosure in insurance applications.
A trucking company's claim under an NTI commercial motor vehicle policy was denied after discrepancies were found in the company's insurance history and operational radius claims.

The issue arose when the firm, led by a sole director identified as "B," sought insurance through a broker. The truck, valued at $82,500, was purchased from "C," the director of another company called "CT". The insurance application falsely stated the company had two years of prior operational and insurance history. Additionally, the declared operational radius was less than 600 km, despite the truck operating interstate.

NTI, upon reviewing the claim, refunded the premiums and rejected the coverage, citing misrepresentation. AFCA supported NTI's decision, reinforcing that no previous insurance was held by the complainant, who had operated for only 19 months. AFCA highlighted that while the business relationship with CT may have confused the broker, a reasonable person wouldn't have provided such misleading information.

This case underscores the critical nature of transparency and accuracy in insurance applications. Misrepresentations, whether inadvertent or deliberate, can lead to denied claims and significant financial repercussions. For businesses, particularly those engaging in partnerships or involving third-party brokers, this ruling serves as a reminder of the due diligence required when disclosing insurance history and operational specifics.

The decision also illustrates the strict adherence to policy stipulations regarding insurance history—a key criterion for coverage eligibility. For consumers, it highlights the importance of understanding the details of insurance applications and the potential impact of inaccurate disclosures.

The ruling may prompt businesses to review their insurance policies and application processes, ensuring alignment with operational realities and disclosure requirements. It serves as a cautionary tale for companies relying on brokers or partners to manage insurance applications, emphasizing the need for oversight to prevent costly mistakes.

For insurers, this case could lead to more rigorous checks during the application assessment to verify client information, reducing the risk of similar occurrences. As the financial services landscape evolves, such cases might influence further regulatory updates to safeguard both insurers and policyholders.

Published:Thursday, 10th Apr 2025
Source: Paige Estritori

Share this news item:

Insurance News

ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues
14 Apr 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Federal Court against Hollard Insurance, alleging a breach of the duty of utmost good faith. This action is in response to what ASIC describes as Hollard's 'egregious' handling of a home and contents insurance claim filed by a couple from regional Victoria. - read more
Suncorp to Slash Jobs and Offshore Work in Motor Claims Suncorp to Slash Jobs and Offshore Work in Motor Claims
11 Apr 2025: Paige Estritori

Suncorp, a leading Australian insurer, has announced plans to reduce its workforce by cutting 30 of the 70 positions within its motor claims assessing coordinator team, with an intention to offshore some of these functions. This decision has prompted a response from the Finance Sector Union (FSU), which is currently gathering feedback from its members and intends to challenge the proposed changes. - read more
AFCA Ruling: Trucking Firm's Claim Invalid Due to Misrepresentation AFCA Ruling: Trucking Firm's Claim Invalid Due to Misrepresentation
10 Apr 2025: Paige Estritori

A recent decision by the Australian Financial Complaints Authority (AFCA) has highlighted the importance of accurate disclosure in insurance applications. A trucking company's claim under an NTI commercial motor vehicle policy was denied after discrepancies were found in the company's insurance history and operational radius claims. - read more
Gow-Gates Secures Two-Year Partnership Extension with Football NSW Gow-Gates Secures Two-Year Partnership Extension with Football NSW
10 Apr 2025: Paige Estritori

Gow-Gates has successfully renewed its role as the official insurance broker for Football NSW, set to continue for an additional two years. The decision was made following an extensive tender process conducted by the soccer organization last year. - read more
Strata Properties in Australia Reach $1.4 Trillion in Value Strata Properties in Australia Reach $1.4 Trillion in Value
08 Apr 2025: Paige Estritori

The insured value of strata properties across Australia has soared to an estimated $1.4 trillion, according to a recent industry report. This significant figure highlights the growing importance of the strata sector, which now encompasses properties worth $486 billion in New South Wales, $471 billion in Victoria, $245 billion in Queensland, and $112 billion in Western Australia. South Australia, the Australian Capital Territory, Tasmania, and the Northern Territory round out the country's strata market. - read more


Business Insurance Articles

Public Liability Insurance for Manufacturers: Are You Fully Covered? Public Liability Insurance for Manufacturers: Are You Fully Covered?
Public liability insurance is a cornerstone of protection for businesses, offering a shield against claims for personal injury or property damage inflicted on third parties as a result of their operations. As manufacturers open their doors to employees, suppliers, and sometimes the public, they navigate a landscape rife with potential hazards. Public liability insurance becomes not just a safety net, but an essential aspect of responsible entrepreneurship. - read more
The Business Owner's Guide to Calculating Adequate Public Liability Coverage The Business Owner's Guide to Calculating Adequate Public Liability Coverage
For any business owner, navigating the waters of legal and financial protection can be daunting. Public liability insurance is a lifeboat in this respect; by understanding its basics, businesses can better shield themselves against the unpredictable tides of liability claims. As a starting point, public liability insurance is designed to protect businesses in the event that a third party suffers an injury or property damage due to the business's operations. - read more
The Importance of Public Liability Insurance in Protecting Your Business The Importance of Public Liability Insurance in Protecting Your Business
Public liability insurance is a type of coverage designed to protect business owners against claims made by third parties for injuries or damages that occur in connection with business operations. - read more
Navigating Public Liability Insurance for Event Organizers: A Must-Read Guide Navigating Public Liability Insurance for Event Organizers: A Must-Read Guide
Event organizing can be an exhilarating adventure, teeming with creativity and collaboration. However, with the buzz of activity and the gathering of crowds comes a significant responsibility to ensure the safety and well-being of attendees, staff, and the venue itself. This is where Public Liability Insurance becomes a pivotal part of an event organizer's toolkit. - read more
Essential Public Liability Coverage for Gym and Fitness Center Owners Essential Public Liability Coverage for Gym and Fitness Center Owners
Running a gym or fitness center comes with unique responsibilities, especially when it comes to providing a safe environment for clients. In this dynamic space, where individuals engage in activities that may pose risks, it is imperative for gym owners to understand the importance of public liability insurance. This type of coverage is a cornerstone for safeguarding your business against claims arising from accidental injuries or property damage to third parties. - read more
Top Mistakes to Avoid When Choosing Public Liability Coverage Top Mistakes to Avoid When Choosing Public Liability Coverage
Public liability insurance stands as a crucial safeguard for businesses, shielding them from the financial repercussions of legal claims. These claims can arise when members of the public suffer damages or injuries in connection with a business's operations. Understanding the basics of this coverage is not just a matter of legal compliance for many businesses, but a proactive step in asset protection. - read more
A Guide to Public Liability Insurance for Construction Businesses A Guide to Public Liability Insurance for Construction Businesses
When embarking on a construction project, the potential for unexpected incidents and the associated liabilities cannot be ignored. Navigating through the intricate world of insurance might seem daunting, but understanding public liability insurance can save your business from financial peril. In the ever-evolving landscape of Australian construction, its significance cannot be overstated. - read more
The Role of Liability Insurance in Managing Contractor and Supplier Risks The Role of Liability Insurance in Managing Contractor and Supplier Risks
Engaging with contractors and suppliers is an integral facet of many business operations, fostering growth and expansion. However, with this collaboration comes inherent risks that can impact a business financially and legally, should any unexpected incidents arise. It is here that liability insurance steps in as a cornerstone of risk management, safeguarding businesses from potential pitfalls associated with these partnerships. - read more
Public Liability Insurance for Tradespeople: Safeguarding Your Business on Site Public Liability Insurance for Tradespeople: Safeguarding Your Business on Site
If you're a tradesperson, safeguarding your business is not just about having the right tools and skills, but also ensuring you're protected against unexpected events on site. Public Liability Insurance plays a crucial role in your safety net, providing a shield against potential financial setbacks caused by accidents and injuries. - read more
The Importance of Public Liability Insurance in Protecting Your Business The Importance of Public Liability Insurance in Protecting Your Business
Public liability insurance is a type of coverage designed to protect business owners against claims made by third parties for injuries or damages that occur in connection with business operations. - read more


Your free liability insurance quote comparison starts here!
Cover Amount:
Postcode:

All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase
Moral Hazard:
The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.

Quick Links: | Public Liability Insurance Australia | Public Liability Insurance | Public Liability Insurance Quote | Compare Public Liability Insurance | Trades Liability | Business Liability | Product Liability
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 finance products. We do not recommend any specific 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, qualified intermediaries with whom you can 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 part 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.