This is appalling conduct but could have been, and still may be rife. Does shopping around help when the insurers were and might still be able to rort their customers and skirt their obligations? This is the Suncorp installment.
An telling example.
While one driver for the behavior’s evident before the RC may be to limit compensation and ensure profit, is there another risk here?
I had a company use vehicle that was badly damaged in a collision approx 12 months before HIH went belly up. Rather than write the vehicle off it was repaired at great expense, except not everything was fixed and it carried many defects forward. No joy with any of those issues. That HIH took forever to settle on a repairer was a warning sign. That they argued about the extent of the work required and did not accept subsequent defects is also telling, although after they folded it was not relevant. That the vehicle was only 6 months old made every subsequent issue a problem as the warranty provisions were always debated.
HIH failed due to management decisions which it appeared in my example to be trying to offset by screwing down on claims.
How can anyone be assured that aggressive and tardy behaviour by a major insurer are not symptoms of a business set to fail? The statutory regulators have been asleep for a long time. Nothing has changed?
And yet again the failure of the oversight organisations to really cause the management and boards of these businesses pain so as to mend their ways. $42 K you would think barely if at all cover the cost of the legal team to take the action in the first place.
Really just another “let’s be seen to be doing something when in fact we don’t want to” outcome with a fine that would barely register at all.