We have been with RACV for over 20 years for various cars and house and contents. While on holidays over Xmas there were a number of blackouts. One of these caused a safety switch to trip and in the process we lost an upright freezer full of meat and a fridge full of food. We spoke to RACV about their food spoilage part of the policy we have. They said we could claim up to $500 with no excess or change to our policy so we made a claim. A week later we were contacted and told it had been accepted. We went through the process of giving bank account details and then we were told that the policy increases 10% for the first year and then “we save” 5% the following year! Based on our current premium, the extra cost over the next 2 years (assuming they don’t put up there premiums!!!) would be $462. So we would be $38 in front! When I said that we were told there would be no changes when we made the claim, the lady said " I can see you were given the wrong info and I will pass this on to the training manager to make sure it is emphasised in future".
RACV have messaged us after we posted on their Facebook page and said they will investigate but they have not rung us for details.
We are now looking for another insurer for Melbourne if people have recommendations please.
Sorry to hear about the trouble @travbulgin, it really highlights how difficult it is to get value from insurance when making a small claim. Hopefully switching insurers can help you save some extra money anyway.
@Finance-Campaigner group - tagging in case anyone can provide a recommendation.
hi @travbulgin
Not legal advise:
A duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others. In this case giving the wrong information could harm, as 'harm" includes economic loss under the Victorian Legislation. (www.legislation.vic.gov.au/Domino/Web_Notes/LDMS/PubStatbook…/03-102a.pdf)
Employees have a duty of care to the public when performing their duties. This extends to any advice given and any actions performed. I believe you could reasonably argue that if the person you first spoke to said there would be no cost, then RACV is bound to honour this.
Advise them that you will go to the Financial Ombudsman Service Australia (https://www.fos.org.au/) if you are not satisfied. You might also mention that you are keeping the Australian Consumer Association informed of this.
If necessary, ask for their disputes area (they will have one) and talk to them.
If you go to the FOS, it will have to be in writing, with everything documented of course.
Forgot to add @travbulgin, write to RACV and for a copy of the audio of your conversation with the initial representative be sent to you. (You probably consented to them recording the conversation for training and other purposes when you made the call.)
I believe they have to provide it if you request it, and if they can’t, then they can not disprove your assertions which will be useful later if you go to FOS.
