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.
A fresh legal controversy is unfolding, concerning a disputed hire car bill totaling $29,000, which has now been directed back to court for further review.
This legal clash originated from a vehicular accident in Wollongong, December 2021, where Cameron Lazicic’s car collided with and irreparably damaged Thomas Rossi’s Honda Civic.
While Mr. Lazicic’s insurer, NRMA Insurance, admitted liability for the damages, they refuted the $29,684 bill from credit hire company Right2Drive. This charge was for a Hyundai i30 rented at $343 per day for 86 days, until Mr. Rossi’s car was replaced.
The total bill for the car hire exceeded the cost of purchasing some models of the Hyundai i30 outright. This discrepancy has sparked significant legal debate.
Given NRMA Insurance’s rejection of the credit hire claims, Mr. Rossi proceeded to sue Mr. Lazicic. However, in an interesting turn during the Local Court proceedings, the magistrate observed Mr. Rossi’s apparent confusion and reluctance, noting that credit hire company Right2Drive had likely initiated the lawsuit by exercising a right of subrogation.
Known for offering replacement vehicles to car crash victims with the assurance of reclaiming the expenses from the at-fault party’s insurer, credit hire companies have drawn the ire of motor insurers. The main concerns stem from their substantial fees, which insurers argue inflate claims and, consequently, hike insurance premiums.
NRMA Insurance provided evidence illustrating that alternative hire car services in Wollongong offered rates as low as $90 per day at the time of the accident. Mr. Lazicic maintained that a rental fee of $7380, equivalent to $85.52 per day, was more reasonable. However, the Local Court ruled against him, holding him liable for the full credit hire bill.
In his appeal last month, the NSW Supreme Court’s Justice Jeremy Kirk highlighted a critical lack of communication between Right2Drive and Mr. Rossi about the financial implications of the hire.
Justice Kirk remarked that Mr. Rossi received a call from Right2Drive shortly after the accident. According to the Local Court magistrate, during this call, there was no discussion regarding payment, rates, or potential discounts. Justice Kirk noted, "When asked about agreeing to pay roughly $345 for a fairly ordinary $22,000 car, Mr. Rossi implied he was unaware of the rate being charged." Further, Mr. Rossi did not inquire about the costs involved.
Ultimately, Justice Kirk overturned the Local Court’s initial decision, citing the magistrate’s failure to provide detailed reasoning or critically assess whether Mr. Rossi's actions in incurring the rental expenses were justified.
This matter has been sent back to the Local Court for a new hearing, promising further developments in the ongoing legal battle.
The original source of this story can be found on [Insurance News](https://www.insurancenews.com.au).
Published:Friday, 9th Aug 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Securities and Investments Commission (ASIC) has initiated legal action against Australian Super, the nation's largest superannuation fund, alleging significant delays in processing nearly 7,000 death benefit claims. These delays, some extending up to four years, have raised serious concerns about the efficiency and fairness of the fund's claims handling processes. - read more
In a strategic move to make life insurance more relevant to younger Australians, TAL has expanded its Health Sense Plus program to encompass income protection policies. This initiative allows advisers to offer clients enhanced value through a straightforward preventative health engagement. - read more
The Australian Prudential Regulation Authority (APRA) has expressed concerns regarding the sustainability of income protection insurance, following significant losses within the industry. Over a five-year period, insurers have reported losses totaling $2.5 billion on this product. - read more
HCF Life, part of Australia's largest not-for-profit health fund, has been honored with the 'Best for Income Protection Insurance (Direct)' award by WeMoney for the third consecutive year. This accolade underscores HCF Life's commitment to providing competitive and customer-focused insurance products. - read more
Recent data from the Council of Australian Life Insurers (CALI) reveals a significant shift in the landscape of income protection insurance in Australia. Mental health conditions have emerged as the leading cause of total and permanent disability (TPD) claims, accounting for nearly one-third of all claims paid. In 2024 alone, insurers disbursed over $2.2 billion for retail mental health claims, a figure that has almost doubled compared to five years prior. - read more
When life throws unexpected challenges your way, income insurance can be a financial lifesaver. Essentially, it's a policy designed to replace a portion of your income if you're unable to work due to illness or injury. Imagine not having to worry about bills piling up while you focus on recovery. That's the peace of mind income insurance aims to provide. - read more
Insurance is a crucial component of financial planning. While many Australians understand the importance of life insurance, there's another vital type of coverage that often gets overlooked: income protection insurance. - read more
When the unexpected strikes, such as an illness or injury hindering our ability to earn a living, the financial repercussions can be devastating. This is where income protection insurance becomes a pivotal part of our financial safety net, ensuring a stream of income during challenging times. - read more
Income insurance, an often-overlooked component of financial security, is gaining traction among Australia's burgeoning self-employed population. In an economy where traditional employment is no longer the sole path to success, this form of insurance has become a cornerstone for proactive financial planning. Touted as a safety net, it ensures that personal livelihoods and business operations remain secure in the face of adversity. - read more
Income protection insurance is a type of insurance policy designed to provide you with a continuous flow of income in case you are unable to work due to illness or injury. It's a safety net that helps ensure you can maintain your standard of living, even when unforeseen health issues arise. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
