Massive Fines Hit Rogue Builders Over Fake Insurance
Massive Fines Hit Rogue Builders Over Fake Insurance
Investigations by the VBA revealed that Aycon Constructions had backed over 150 building permit applications with counterfeit domestic building insurance (DBI) records, performing building work without securing legitimate insurance policies. Builders in Victoria are legally obligated to obtain DBI for projects exceeding $16,000 to safeguard consumers and contractors alike.
The authority suspended Aycon’s operations in April after executing search warrants on multiple Melbourne sites, uncovering that the firm had been functioning without the essential DBI policies. The Victorian Managed Insurance Authority (VMIA) substantiated these findings, indicating that Aycon had not only bypassed obtaining insurance for several projects but had also replicated VMIA’s logo for these false certificates.
In response to these egregious violations, Mr. Ayranci’s registration as a builder has been revoked, and he has been disqualified from the industry for three years — the maximum duration allowed under current legislation. The VBA classified Ayranci as “unfit and improper,” also stating that his actions epitomize unprofessional conduct.
Anna Cronin, Commissioner and CEO of the VBA, emphasized the regulator's unwavering stance against disreputable builders. "This unprecedented penalty exemplifies our commitment to using every tool in our regulatory arsenal to protect consumers from unethical practices and ensure compliance in the building industry," remarked Ms. Cronin. "We urge consumers always to verify their builder’s registration and confirm the presence of a valid DBI policy, which is a legal necessity."
The VBA continues to engage with affected clients of Aycon, having noted a "relatively small" yet concerning number of complaints filed in May. The agency seeks to support these customers as they navigate the repercussions of Aycon’s malpractice.
Published:Saturday, 20th Jul 2024
Source: Paige Estritori
Share this news item:
| AFCA Urges Insurance Industry to Improve Premium Explanations to Reduce Disputes 23 Oct 2025: Paige Estritori The Australian Financial Complaints Authority (AFCA) is calling on insurers to enhance their communication regarding premium increases to help resolve disputes more effectively and fairly. The authority suggests that offering flexible payment options could also aid in managing disputes. - read more |
| TAL's $4.7 Billion Payout Reflects Rising Insurance Claims in Australia 23 Oct 2025: Paige Estritori Leading Australian life insurer TAL has reported a substantial $4.7 billion in life insurance claims paid over the 12 months ending March 31, 2025. This figure underscores the significant role life insurers play in providing financial support to Australians during challenging times. - read more |
| Encompass Protection Recognized as Best Income Protection Provider in 2025 23 Oct 2025: Paige Estritori Encompass Protection has been honored with the Income Protection Insurance Award at the 2025 Money Magazine Life Insurance Awards. This accolade reflects the company's commitment to providing exceptional coverage and service to Australians seeking income protection solutions. - read more |
| Marinex Underwriting: A New Era in Australian Marine Insurance 23 Oct 2025: Paige Estritori In a significant development for Australia's marine insurance sector, Rhodian Group has unveiled its latest venture, Marinex Underwriting. This new agency is set to provide specialised marine insurance products tailored to the unique needs of the Australian market. - read more |
| How to Ensure Your Travel Insurance Covers Your Next Adventure Sport Australians are known for their adventurous spirit, often seeking thrills through activities such as bungee jumping, surfing, and skiing. Adventure sports provide an adrenaline rush and an escape from the everyday routine, making them highly appealing to those who crave excitement and challenge. - read more
|
| Protecting Your Future: A Simple Approach to Life and Disability Insurance Welcome to the crucial conversation about safeguarding your future through life and disability insurance. Many of us ponder the distant horizon of life's 'what ifs,' but are we truly prepared? The reality is that our financial security can be drastically affected by unforeseen events—a serious illness or a sudden disability that prevents us from working. That's where life and disability insurance come into play, serving as critical safety nets that can keep us afloat during tough times. - read more
|
| Top Strategies for Long-Term Income Protection in Australia Income protection is a safeguard that ensures you have a steady stream of income if you're unable to work due to illness or injury. This type of insurance can be a lifesaver, providing peace of mind and financial stability during challenging times. - read more
|
| Understanding Life Insurance: How to Determine Coverage Amounts Life insurance is a cornerstone of financial planning, offering peace of mind to you and security for your loved ones. It's a contract between you and an insurance company: in exchange for regular premiums, the insurer agrees to pay a sum of money to designated beneficiaries upon your passing. This vital tool ensures that your family's financial needs can be met during an incredibly difficult time. - read more
|
Insures your income in the event of you being unable to work due to sickness or accident.