Case Studies

Our case notes show how we deal with the many different issues that arise in our case investigations. The case notes aim to provide consumers and participants with guidance as to the approach we are likely to take in a particular type of case or highlight some of the many different ways in which a complaint can be resolved.

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Title Year Case summary
Frightful fee for foiled finance 2016

Terence tried to arrange finance to save his factory. Terence signed a loan agreement but decided not to draw down the funds as it would not be enough to pay off the mortgage debt over the factory. Later, when selling the factory, Terence found that the lender he was to draw down the loan from had registered a caveat against the property to secure payment of lender and broker fees. Terence had to pay $44,000 to get the caveat removed. Can Terence’s lender and broker charge fees for a loan that was arranged but never drawn down?

Kaikoura earthquake causes loss 2016

Alan claimed for a loss of $50,000 under his business interruption policy. Alan’s insurer accepted the claim but offered compensation of $12,500. Alan contacted his broker assuming the insurer had made a mistake given the cover he had in place. The broker explained that because his lodge was undamaged, he was only eligible for contingent business interruption cover. Alan’s policy limited the contingent business interruption cover to 25% of the total amount insured.

Restricted remit ruins relationship 2016

Sanjay wanted lower cost insurance and asked his insurance adviser to get quotes from other insurers. Sanjay’s insurance adviser provided the quotes and Sanjay chose a new insurer. Sanjay completed the application forms and the new insurer approved cover. Shortly after moving insurer, Sanjay made a claim. After reviewing Sanjay’s medical records, the new insurer cancelled Sanjay’s policy for non-disclosure of pre-existing medical conditions. Sanjay was upset that his adviser had not fully advised him about go the new policies and his duty of disclosure. Was the insurance adviser at fault?

The sheared shares 2017

Richard purchased some Australian shares a number of years ago. In 2016, he instructed his broker to sell those shares but discovered he no longer owned them.

Joint property, but separate information 2016

A broker declines to release information provided by one co-insured to the other co-insured

Car crash crisis 2017

What happens when a driver under 25 years of age excluded from policy causes an accident?

Insurance cancelled for failing to disclose a heart attack 2017

Non-disclosure of a medical condition leads to cancellation of the policy, but what about the premiums paid for cover that never existed?

Pre-existing medical condition indirectly causes loss 2016

An insurer declines the travel expenses associated with a son’s return home for his father’s funeral because the father’s death was indirectly caused by a pre-existing medical condition

Ava gets her payments back on track 2016

After non-payment of loan instalments, Ava’s vehicle is repossessed by her lender. We investigate whether the lender followed the correct process when Ava fell into arrears and in repossessing her vehicle.

Employee theft leaves clothing store bare 2016

Did Dylan ask his broker to arrange employee theft insurance?