Australia’s external dispute-resolution body has warned victims of recent natural disasters, including the ongoing bushfires, against signing up with insurance middlemen to progress their claims, as these are usually “not necessary or of any real value.”
Justin Untersteiner, chief operating officer of the Australian Financial Complaints Authority (AFCA), said people should think twice before signing contracts with claims management firms, especially when there is AFCA “that is completely free to use and legally binding on financial firms.”
“AFCA has heard reports of claims management companies charging people to manage disputes with financial firms,” Untersteiner said. “While not illegal, AFCA is concerned that people are being charged excessive costs and/or a percentage of the sum recovered, when in reality the service provided is of no real benefit to the person. AFCA warns against signing binding contracts with claims management companies unless people clearly understand the likely cost implications. In most cases it is not necessary or of any real value.”
To help identify and expedite complaints about financial products and services from the impacted communities, AFCA recently launched the AFCA bushfire support line, 1800 337 444.
“If you’re affected by the bushfires, and you find yourself in a dispute with your insurer or financial provider about a claim or request for assistance, AFCA can help resolve it,” Untersteiner said. “We have special processes that identify and fast-track complaints from people, primary producers, and small businesses in impacted communities, so we can assist you to resolve complaints as quickly as possible.”
For more information, visit AFCA’s online bushfire support information hub.
