Broker not to blame as claim crashes over driver history
The industry ombudsman says a broker was entitled to rely on information previously supplied by a commercial motor client when obtaining a new policy.
An insurer rejected a truck damage claim two months after policy inception because the driver’s history of traffic offences and licence suspensions had not been disclosed.
But Gallagher did not breach its duty of care when arranging the policy in October 2024, despite using driver history information dating back to a 2022 proposal, the Australian Financial Complaints Authority has found.
The broker “provided the complainant with an opportunity to review the policy information and let it know if anything was wrong before the policy was issued. The information was not corrected by the complainant.”
The client’s previous policy had lapsed due to non-payment, and the broker contacted the client proposing reinstatement.
After the truck accident in December 2024, the client argued the broker should have obtained updated information because it was a new policy rather than a renewal. The client also said it had not received new policy documents.
AFCA accepts the broker’s evidence the documents were sent and there was no email bounce-back or delivery failure. The broker also reminded the client of its disclosure obligations.
The ombudsman notes the client had several opportunities to correct the driver history information, including when the 2022 proposal was completed, during subsequent policy periods and when the October 2024 proposal was sent for review.
AFCA also accepts the broker’s position that it was entitled to rely on information supplied by the client and was not required to independently verify the driver’s history.
It says the broker’s financial services guide made clear that it relied on information provided by clients and expected them to advise of changes and check information completed on their behalf.
Read the ruling here.
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