Household Insurance Online :: News
SHARE

Share this news item!

Massive Fines Hit Rogue Builders Over Fake Insurance

Massive Fines Hit Rogue Builders Over Fake Insurance

Massive Fines Hit Rogue Builders Over Fake Insurance?w=400

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.

On July 19th, 2024, in a significant crackdown on fraudulent building practices, Aycon Constructions along with its director, Seyit Ayranci, received a record-setting fine of $250,000 from the Victorian Building Authority (VBA).
The enforcement action came after the construction firm was implicated in the use of falsified insurance certificates to secure building permits.

Investigations by the VBA revealed that Aycon Constructions had backed over 150 building permit applications with counterfeit domestic building insurance (DBI) records, performing building work without securing legitimate insurance policies. Builders in Victoria are legally obligated to obtain DBI for projects exceeding $16,000 to safeguard consumers and contractors alike.

The authority suspended Aycon’s operations in April after executing search warrants on multiple Melbourne sites, uncovering that the firm had been functioning without the essential DBI policies. The Victorian Managed Insurance Authority (VMIA) substantiated these findings, indicating that Aycon had not only bypassed obtaining insurance for several projects but had also replicated VMIA’s logo for these false certificates.

In response to these egregious violations, Mr. Ayranci’s registration as a builder has been revoked, and he has been disqualified from the industry for three years — the maximum duration allowed under current legislation. The VBA classified Ayranci as “unfit and improper,” also stating that his actions epitomize unprofessional conduct.

Anna Cronin, Commissioner and CEO of the VBA, emphasized the regulator's unwavering stance against disreputable builders. "This unprecedented penalty exemplifies our commitment to using every tool in our regulatory arsenal to protect consumers from unethical practices and ensure compliance in the building industry," remarked Ms. Cronin. "We urge consumers always to verify their builder’s registration and confirm the presence of a valid DBI policy, which is a legal necessity."

The VBA continues to engage with affected clients of Aycon, having noted a "relatively small" yet concerning number of complaints filed in May. The agency seeks to support these customers as they navigate the repercussions of Aycon’s malpractice.

Published:Saturday, 20th Jul 2024
Author: Paige Estritori

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.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

New Isuzu Truck Recall Highlights a Claims Evidence Issue
New Isuzu Truck Recall Highlights a Claims Evidence Issue
05 Nov 2026: Paige Estritori
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
Mental Health Cover Debate Now Matters for Business Protection
Mental Health Cover Debate Now Matters for Business Protection
05 Nov 2026: Paige Estritori
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
Life Claims Inquiry Puts Delays Under Fresh Scrutiny
Life Claims Inquiry Puts Delays Under Fresh Scrutiny
05 Nov 2026: Paige Estritori
A new Life Code Compliance Committee inquiry has put renewed attention on how Australian life insurers manage longer-running claims, finding that avoidable gaps in information requests and customer communication can add pressure to already complex total and permanent disability and income protection matters. - read more
New claims data puts life insurance dispute risk back in focus
New claims data puts life insurance dispute risk back in focus
05 Nov 2026: Paige Estritori
Australian life insurance claims performance is back under scrutiny after APRA released its latest Life Insurance Claims and Disputes Statistics on 16 October 2026, covering the rolling 12 months from 1 July 2025 to 30 June 2026. ASIC’s MoneySmart claims comparison tool was also updated on 26 October 2026, giving consumers and business owners a clearer way to compare insurers by accepted claims, decision times, disputes and cancellation rates. - read more
Claims review highlights the cost of slow communication
Claims review highlights the cost of slow communication
05 Nov 2026: Paige Estritori
A new Life Code Compliance Committee inquiry has sharpened attention on how life insurers manage longer-running total and permanent disability and income protection claims, finding that earlier information requests and clearer communication could reduce avoidable delays for people already dealing with illness, injury or loss of income. - read more


Household Insurance Articles

The Beginner's Checklist for Comparing Home Insurance Quotes Online
The Beginner's Checklist for Comparing Home Insurance Quotes Online
Home insurance serves as a critical safety net for homeowners, providing peace of mind and financial protection from unexpected events. In Australia, where Mother Nature’s whims can often result in extreme weather conditions, securing a robust home insurance policy isn't just wise—it's practically a necessity for safeguarding one of life's biggest investments. - read more
Protecting Your Home: The What, Why, and How of Home Insurance
Protecting Your Home: The What, Why, and How of Home Insurance
As Australians, our homes are often at the heart of our livelihoods and hold significant emotional and financial value. Protecting this important asset is more than just a precaution; it's a necessary step in safeguarding our future. Home insurance acts as a shield against unpredictable events that can have devastating effects on our property and peace of mind. Whether it's from natural disasters or unforeseen accidents, the significance of home insurance cannot be understated. - read more
How Often Should You Review and Update Your Household Insurance Policy?
How Often Should You Review and Update Your Household Insurance Policy?
It’s easy to think of household insurance as something you purchase once and forget about. However, this approach can leave you vulnerable to unexpected risks. Your home and its contents change over time, and so do your insurance needs. - read more
Wild Weather Ahead: Safeguarding Your Property from Storm-Related Damages
Wild Weather Ahead: Safeguarding Your Property from Storm-Related Damages
Welcome to our essential guide for protecting your property as wild weather sets its sights on Australia. Catastrophic storms and extreme conditions don't have to spell disaster for your home. Understanding the sheer force of Mother Nature reinforces the importance of consistent preparedness. In this article, we'll arm you with the knowledge you need to stand resilient against the elements. - read more
5 Essential Insurance Policies for Your Home-Based Business
5 Essential Insurance Policies for Your Home-Based Business
If you're running a business from your home, you may think that your homeowner's insurance policy has you covered. Unfortunately, this is not the case. Homeowner's insurance policies are not typically designed to cover business-related losses, leaving you vulnerable to significant financial risks if something goes wrong. - read more

Knowledgebase
Loss Ratio:
The ratio of claims paid by an insurer to the premiums earned, used as a measure of profitability.