A homeowner who said her gas line was damaged in an earthquake will not receive a payout after the financial services ombudsman found insufficient evidence to support her claim.

The Victorian woman reported that her gas heating stopped working about a week after a magnitude-4.3 quake in February 2024.  

Her gas distributor said there were fractures in her line and it needed replacing. As a result, the gas system was removed and gas appliances had to be replaced.  

The woman lodged a claim last June – more than a year after the quake – for $29,193 of work.  

She argued the timing of the quake and the gas line fault proved a connection between them.  

Insurance Manufacturers of Australia said it arranged for its engineer and a builder to inspect the property, but they were denied access by the claimant.  

It said this – plus the woman’s decision to remove the gas line before agents could assess it – hindered its ability to determine whether the quake caused the damage.

In a dispute ruling, the Australian Financial Complaints Authority agrees that without expert reporting, there was no way to establish the earthquake caused the loss.

Without such evidence “it would be unfair to require the insurer to pay the claim when the policy does not respond”.  

However, Insurance Manufacturers of Australia must pay $2000 compensation for poor communication and handling of the claim. AFCA notes the insurer recorded incorrect dates, often ignored the claimant’s request to communicate via email, and was slow to respond.

See the ruling here.