Income Insurance :: News
SHARE

Share this news item!

Insurance Dilemma: Ignored Occupation Costs Claimant His Compensation

Insurance Dilemma: Ignored Occupation Costs Claimant His Compensation

Insurance Dilemma: Ignored Occupation Costs Claimant His Compensation?w=400
A recent case involving an Uber Eats driver has highlighted the critical importance of truthfulness when disclosing occupational details to auto insurers.
The claimant's car crash claim was rejected due to an undisclosed delivery job, marking a significant case study on the enactment of insurance policy terms.

The incident unfolded when the Uber driver was involved in a rear-end collision last November, reportedly while attempting to recover a fallen phone during a delivery run. At the heart of the controversy was the failure to disclose the use of his vehicle for commercial purposes at the time of renewing his insurance policy.

Auto & General Services, the insurer in question, turned down the claim. The company's policy specifically excludes coverage for cars used in delivery services, and any misrepresentation about vehicle usage at the policy renewal stage is grounds for claim denial. This case adds to the growing number of insurance disputes over non-disclosure during policy terms.

The driver attempted to rectify his initial crash statement by claiming he was collecting food for personal consumption at the time of the accident, contradicting his original claim, which stated he was making a food delivery. However, the Australian Financial Complaints Authority (AFCA) was not swayed.

During the investigation, AFCA cited multiple recorded conversations where the driver mentioned delivering food, thus casting doubt on his subsequent clarification. A pivotal detail was uncovered showing that another vehicle was registered on the driver's Uber Eats profile, but AFCA maintained that the statements made in the immediate aftermath of the crash held more weight in decision making.

This scenario underscores the devastation ignorance or miscommunication can cause during the critical moments of policy renewal. Before beginning his job as a delivery driver, the claimant was found not to have deceived the insurer. Nevertheless, upon commencing the job, failing to inform the insurer of the vehicle's use led directly to the policy breach.

AFCA concluded that had Auto & General Services been made aware of the change in the vehicle's purpose, they would have revoked the man's policy altogether, thus justifying claim rejection. According to AFCA, "The product disclosure statement clearly and unambiguously states that carrying or delivering other people's goods for payment is never covered." They confirmed the complainant had access to the policy papers and neglected to inform the insurer about the change, effectively sealing the decision.

The Financial Review cites this case as an exemplar of how minor oversights during insurance disclosure stages can result in significant financial repercussions. It expands the ongoing discourse on transparency between policyholders and providers, urging consumers to regularly review and update their insurance purposes to align with their new ventures.

This incident serves as a pertinent reminder for anyone considering turning their personal vehicles into commercial vehicles: honest communication with insurers is not just advisable; it is imperative.

Published:Friday, 8th Nov 2024
Source: Paige Estritori

Share this news item:

Insurance News

Asbestos Scare Leaves Hospitality Business Uninsured Asbestos Scare Leaves Hospitality Business Uninsured
04 Jul 2025: Paige Estritori

The discovery of asbestos-contaminated mulch in a Sydney park led to the cancellation of a festival, resulting in significant financial losses for a hospitality business. Despite these setbacks, the company's claim for coverage under its business interruption (BI) policy was rejected. - read more
Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims
03 Jul 2025: Paige Estritori

In a groundbreaking decision by the NSW Personal Injury Commission, an insurer has been directed to cover the costs of dog walking services for a car crash victim. The commission ruled that these services classify as domestic assistance under the state’s Motor Accident Injuries Act. This case could pave the way for broader interpretations of 'attendant care services' for claimants. - read more
Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers
03 Jul 2025: Paige Estritori

Extreme weather events in Australia have resulted in significant financial impacts for insurers, tallying $1.83 billion in losses during the first half of the year. This comes as insurance companies gear up for further claims linked to ongoing severe weather in New South Wales. - read more
ClearView Names New Underwriting Head Amidst Strategic Changes ClearView Names New Underwriting Head Amidst Strategic Changes
30 Jun 2025: Paige Estritori

ASX-listed life insurer ClearView has announced the appointment of Peter Tilocca as Head of Underwriting, coinciding with key updates to its underwriting standards and definitions. Tilocca's extensive two-decade career in Australian underwriting includes leadership roles at Zurich, Noble Oak, One Path Life, and RGA Australia. His new role with ClearView commenced on 30 June. - read more
Ombudsman Supports Theft Claimant in Home Business Coverage Dispute Ombudsman Supports Theft Claimant in Home Business Coverage Dispute
30 Jun 2025: Paige Estritori

A recent case has seen a policyholder triumph over her insurer after the Australian Financial Complaints Authority (AFCA) ruled in her favour following a contentious dispute regarding home business operations. The controversy arose when the woman's theft claim was denied by her insurance provider, IAG, over allegations of fraudulent misrepresentation about the use of her rental property. - read more



Life Insurance Articles

How Pre-Existing Conditions Affect Your Income Protection Insurance Options How Pre-Existing Conditions Affect Your Income Protection Insurance Options
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
Understanding Income Protection Insurance: A Comprehensive Guide for Australians Understanding Income Protection Insurance: A Comprehensive Guide for Australians
Income protection insurance is an essential component of financial security for Australians, designed to provide a safety net by replacing a portion of your income if you're unable to work due to illness or injury. Despite its critical role in safeguarding livelihoods, it's often overlooked in personal financial planning. - read more
Income Protection Insurance: A Must-Have for Australian Adults Income Protection Insurance: A Must-Have for Australian Adults
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
Common Pitfalls in Income Insurance Claims and How to Avoid Them Common Pitfalls in Income Insurance Claims and How to Avoid Them
Income insurance is a critical component of financial planning, offering a safety net when life's uncertainties impact your income stream. It ensures that you can continue meeting your financial obligations even if you're unable to work due to illness or injury. This peace of mind is invaluable, especially in an unpredictable job market. - read more
How to Determine the Right Income Protection Coverage for Your Needs How to Determine the Right Income Protection Coverage for Your Needs
Income protection insurance is a type of coverage designed to replace a portion of your income if you're unable to work due to illness or injury. - read more
Navigating Pre-existing Conditions in Income Protection Insurance Navigating Pre-existing Conditions in Income Protection Insurance
Income protection insurance is a safety net that many Australians rely on to secure their financial future in the event of illness or injury preventing them from working. It's a type of policy that provides a replacement income if you are unable to earn your regular income due to a health-related absence from the workplace. - read more
How Income Protection Insurance Can Safeguard Your Financial Future How Income Protection Insurance Can Safeguard Your Financial Future
Income protection insurance is a type of insurance policy designed to replace a portion of your income if you are unable to work due to illness or injury. This financial safety net can help cover essential living expenses, such as mortgage repayments, utility bills, and daily costs, ensuring you maintain your standard of living during tough times. - read more
Income Protection Insurance vs. Total Permanent Disability: What’s the Difference? Income Protection Insurance vs. Total Permanent Disability: What’s the Difference?
When life throws unexpected challenges your way, being financially prepared can make all the difference. This is where Income Protection Insurance and Total Permanent Disability (TPD) Insurance come into play. These two types of insurance provide a crucial safety net, ensuring that you and your family remain financially stable even when you're unable to work due to illness or injury. - read more
Understanding Income Protection Insurance: A Comprehensive Guide for Australians Understanding Income Protection Insurance: A Comprehensive Guide for Australians
Income protection insurance is an essential component of financial security for Australians, designed to provide a safety net by replacing a portion of your income if you're unable to work due to illness or injury. Despite its critical role in safeguarding livelihoods, it's often overlooked in personal financial planning. - read more
Illness and Your Finances: Strategies for Continuous Income Flow Illness and Your Finances: Strategies for Continuous Income Flow
When illness strikes, the impact on your finances can be as significant as on your health. Maintaining continuous income flow during such times is crucial for financial stability. - read more

Start Here !
disability protection
Apply now for your free Insurance assessment and price comparisons!

Start Here

Monthly Income Benefit:
Postcode: