Household Insurance Online :: News

Share this news item!

Allianz's Payout Reduction Approved in Car Claim Dispute

In a landmark decision, the Australian Financial Complaints Authority has ruled in favor of Allianz, allowing the insurer to significantly reduce its payout for a car damage claim due to a misdescribed vehicle model.

The case involves a claimant who purchased a 2013 Range Rover Dynamic for $41,750 from a private seller on June 2nd of the previous year. Tragically, the vehicle caught fire and was deemed a total loss on the same day he picked it up.

Believing his new car was covered, the man submitted a claim to Allianz for the agreed value of $105,950, under a policy initiated the day of the incident. Initially, Allianz seemed to agree to the settlement amount; however, an investigation revealed a discrepancy in the model description.

The claimant had listed his vehicle as the more luxurious and costly 2013 Range Rover Autobiography MY14.5 model when, in fact, it was a Range Rover Dynamic. This misdescription resulted in an overinflated insured value.

As a result, Allianz recalculated the vehicle's worth and offered to settle the claim for a revised value of $66,630. After deducting remaining premiums and excess, the final payout amounted to $58,979.

The vehicle owner argued that he made an "innocent misrepresentation" because the insurer’s website provided a model with an outdated engine when he searched using his car's registration. He claimed he selected the Autobiography MY14.5 model since it had a similar engine type.

"I opted for the only model with my engine type and MY14.5 badging," the man explained to the complaints authority. "The website's labeling was incorrect and misled me."

The Australian Financial Complaints Authority concluded that while the policyholder's situation was understandable, it did not excuse the inaccurate car description, which breached policy terms.

"I acknowledge the complainant's challenge in finding his exact car model on the insurer's online policy platform," an AFCA ombudsman commented. "However, this does not justify misrepresenting the car's specification."

The AFCA stressed the importance of accurate car descriptions in insurance agreements, advising policyholders to make additional inquiries if unable to find the right model online.

This ruling reinforces Allianz's right to adjust the settlement based on a common law precedent, affirming the fairness of the insurer’s reduced offer. The case highlights the critical nature of precise data input when setting up insurance policies.

For further insights, the original article can be found on the Australian Financial Complaints Authority's website.

Published:Thursday, 5th Sep 2024
Source: Paige Estritori

Share this news item:

Insurance News

Insurance Industry Calls for Liability Law Reforms as Costs Skyrocket for Entertainment Sectors

16 Oct 2025: Paige Estritori

The Insurance Council of Australia (ICA) is advocating for comprehensive reforms in liability laws to tackle rising insurance premiums, particularly impacting sectors such as live music venues, festivals, caravan parks, and amusement venues. The call comes with the release of a white paper highlighting that outdated state-based civil liability laws, untouched for nearly 25 years, are inflating costs significantly. - read more

Surge in Profits for Australian Insurers Amid Rising Premiums

15 Oct 2025: Paige Estritori

In 2024, Australia's insurance industry reported a collective after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion. This surge is attributed to substantial premium hikes and a relatively quiet year for natural disasters. - read more

Rising Insurance Costs Challenge Australian Businesses Amid Crime Surge

15 Oct 2025: Paige Estritori

Australian businesses are confronting escalating insurance premiums, driven by a surge in break-ins and thefts. This trend is placing additional financial strain on business owners already navigating a complex economic environment. - read more

Allianz Australia Penalised for Misleading Insurance Practices

15 Oct 2025: Paige Estritori

In a significant regulatory development, Allianz Australia and its subsidiary, AWP Australia, have been fined $16.8 million for making false and misleading statements. This penalty underscores the critical importance of transparency and honesty in the insurance industry. - read more

Allianz Australia Completes Acquisition of RAA Insurance

15 Oct 2025: Paige Estritori

Allianz Australia has successfully completed the acquisition of RAA Insurance for $642 million, marking a significant expansion of its operations in South Australia. This strategic move is set to enhance Allianz's market presence and diversify its service offerings in the region. - read more

Click for more Insurance News

Household Insurance Articles

Why Australian Households Can't Afford to Skip Insurance

Household insurance is a critical safety net for many Australian families. It protects against unexpected events such as natural disasters, theft, and accidents, ensuring that your home and belongings can be repaired or replaced if something goes awry. - read more

The Essential Guide to Comprehensive Household Coverage in Australia

Comprehensive household coverage, often referred to as home insurance, is a policy designed to protect your home and its contents against a wide array of risks. This type of coverage typically includes protection against natural disasters, theft, vandalism, and various unforeseen events. In simple terms, it's the safety net that ensures peace of mind should the unexpected happen to your property or possessions. - read more

Essential Tips to Find the Right Home and Contents Insurance for Your Family

In the face of unpredictable climate patterns and wild weather, safeguarding your home becomes a top priority, especially in a country like Australia. Choosing the right home and contents insurance is essential in providing a financial safety net against the forces of nature. With this in mind, the importance of insurance cannot be overstated, acting as a crucial buffer to protect your property and belongings. - read more

10 Tips for Lowering Your Home and Contents Insurance Premiums

One of the best ways to lower your home and contents insurance premiums is to shop around for the best deal. Insurance companies often have varying rates, discounts, and offers that could save you a significant amount of money. Start by researching different insurance providers and their policy offerings. Make sure to compare not only pricing but also features, coverages and deductible amounts. - read more

10 Common Household Insurance Policies: What Aussie Families Need to Know

Household insurance is an essential aspect of financial planning for Australian families. It provides peace of mind and financial protection in case of unexpected events such as natural disasters, theft, or accidents. Given the unpredictable nature of life, having the right insurance policy can safeguard your home and its contents, ensuring that you are not left in a financial bind when disaster strikes. - read more

Knowledgebase

Insurance broker:
An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.

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 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 intermediaries, insurers and lenders - with whom you can then 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 party 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. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.