Income Insurance Online :: News
SHARE

Share this news item!

Allianz's Payout Reduction Approved in Car Claim Dispute

Allianz's Payout Reduction Approved in Car Claim Dispute

Allianz's Payout Reduction Approved in Car Claim Dispute?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.

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owner argued that he made an "innocent misrepresentation" because the insurer’s website provided a model with an outdated engine when he searched using his car's registration.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

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Allianz Partners Highlights Risks of Travelling Uninsured
Allianz Partners Highlights Risks of Travelling Uninsured
23 Jan 2026: Paige Estritori
Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travellers embark on international journeys without any form of travel insurance. This statistic has prompted Allianz Partners to urge Australians to reconsider the importance of securing adequate coverage before travelling abroad. - read more
Surge in Medical Claims Among Australian Travellers Highlights Importance of Comprehensive Insurance
Surge in Medical Claims Among Australian Travellers Highlights Importance of Comprehensive Insurance
23 Jan 2026: Paige Estritori
In 2024, medical incidents emerged as the leading cause of travel insurance claims among Australian travellers, accounting for more than 40% of all claims handled by nib Travel. This trend underscores the critical importance of securing comprehensive travel insurance to mitigate the financial risks associated with medical emergencies abroad. - read more
Qantas Travel Insurance Honoured with Mozo Experts Choice Award 2024
Qantas Travel Insurance Honoured with Mozo Experts Choice Award 2024
23 Jan 2026: Paige Estritori
Qantas Travel Insurance has been recognised in the 2024 Mozo Experts Choice Awards for Travel Insurance, showcasing its exceptional value for their Annual Multi Trip Travel Insurance policy. - read more
Australian Insurers Falling Behind in Cybersecurity Readiness
Australian Insurers Falling Behind in Cybersecurity Readiness
23 Jan 2026: Paige Estritori
Recent findings from the PwC Insurance Banana Skins Survey reveal that Australian insurers are lagging behind their global counterparts in preparedness for emerging risks, particularly in the realms of cybersecurity and artificial intelligence (AI). This survey, encompassing insights from 698 insurance executives across 42 territories, highlights a concerning trend for the Australian insurance sector. - read more
Climate Change Drives Up Home Insurance Premiums in Australia
Climate Change Drives Up Home Insurance Premiums in Australia
23 Jan 2026: Paige Estritori
Insurance Australia Group (IAG) has recently highlighted the escalating impact of climate change on home insurance premiums across the nation. The insurer's latest report indicates that the increasing frequency and severity of weather events are contributing to higher costs for homeowners seeking coverage. - read more
Click for more Insurance News


Life Insurance Articles

How to Compare Income Protection Insurance for Self-Employed Australians
How to Compare Income Protection Insurance for Self-Employed Australians
For self-employed Australians, the financial stability provided by consistent income is the backbone of both personal and business success. Unlike traditional employees, who might have access to sick leave or employer-sponsored disability benefits, self-employed individuals are solely responsible for their financial security in the event of illness or injury. This is where income protection insurance steps in as a crucial safeguard. - read more
Separating Fact from Fiction: The Myths of Income Insurance Revealed
Separating Fact from Fiction: The Myths of Income Insurance Revealed
Have you ever thought about how you would manage financially if you couldn't work due to an illness or injury? Income protection insurance is designed to replace a significant portion of your income if you find yourself unable to earn for an extended period. It's an essential safety net, providing peace of mind and financial stability during times of uncertainty. - read more
How to Compare Income Protection Policies When You Have a Medical History
How to Compare Income Protection Policies When You Have a Medical History
In today's ever-changing world, financial security is a cornerstone of peace of mind, particularly for Australians grappling with medical histories. Income protection insurance emerges as a pivotal solution, safeguarding not only the individual’s fiscal health but the well-being of their dependents. This introduction explores the nuances of income protection insurance and its particular significance for those with pre-existing medical conditions. - read more
From Illness to Injury: Understanding the Scope of Income Protection Insurance
From Illness to Injury: Understanding the Scope of Income Protection Insurance
In the uncertain times we face today, where both health and economic climates are unpredictable, safeguarding your financial stability becomes paramount. This is where income protection insurance steps in as an essential safety net. For many Australian families, it's the buffer that ensures life's financial commitments are met, even when ability to work is compromised. - read more
Why Income Protection Insurance Is Essential for Australians
Why Income Protection Insurance Is Essential for Australians
Income protection insurance is a type of personal insurance that provides financial support if you are unable to work due to illness or injury. It ensures that you continue to receive a portion of your income, helping you manage daily expenses and financial commitments during recovery. - read more


Start Here

Monthly Income Benefit:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Loss of Use:
Insurance coverage that pays for the additional living expenses if your home is uninhabitable due to a covered loss.

Quick Links: | Income Insurance | Income Protection Insurance | Income Insurance For Self-employed | Income Insurance Quotes | Best Income Insurance Australia | Income Insurance For Employees | Income Insurance Comparison | Income Protection For Contractors | Temporary Income Protection | Income Replacement Insurance | Income Protection Policy
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed 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 validating 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.