The Australian Securities and Investments Commission (ASIC) is suing Hollard Insurance for alleged “serious claim handling failures.” In a media release, the regulator said the case involves a couple from regional Victoria who made a claim following storm damage to their roof.
Australian owned Hollard Insurance Company offers a range of insurance products through partnerships in New Zealand.
“In the end, because of the excessive delays by Hollard and the failure to undertake make-safe works, the home has become so riddled with moisture, mould and decay that it is uninhabitable and now needs to be demolished and rebuilt,” said Sarah Court (main picture), ASIC’s deputy chair.
ASIC alleges Hollard breached its duty of utmost good faith. The release said Hollard initially accepted the claim, “then repeatedly delayed decisions about repairs,” took over nine months to initiate an inspection and delayed providing temporary accommodation.
The couple, said ASIC, then “rejected a modest cash settlement offer by Hollard and lodged a complaint to the Australian Financial Complaints Authority (AFCA).”
“We are taking this case to send a clear message that delays of this magnitude are not acceptable and, in our view, are unlawful,” said Court.
Insurance Business reached out to Hollard Insurance for comment. A spokesperson said the firm acknowledges the filing of proceedings.
“We support ASIC’s work in driving positive outcomes for consumers and are cooperating with ASIC in this matter,” said the emailed statement. “As this is an ongoing legal matter, we are unable to provide further comment.”
The case was lodged in the Federal Court yesterday. The ASIC release said the regulator is seeking declarations and a civil penalty in relation to s 13 of the Insurance Contracts Act.
