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 Ayranci’s registration as a builder has been revoked, and he has been disqualified from the industry for three years — the maximum duration allowed under current legislation.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:
| Significant Decline in Australian Commercial Insurance Rates 25 Mar 2026: Paige Estritori In the final quarter of 2025, Australian commercial insurance rates experienced a substantial decline of 12%, marking the most significant drop among the eight regions monitored by Marsh Risk's Global Insurance Market Index. This trend reflects a broader pattern of decreasing rates that began in early 2024, with the Pacific region, predominantly Australia, leading the way. - read more |
| Human Factors Dominate Causes of Major Truck Crashes in Australia 25 Mar 2026: Paige Estritori The National Truck Accident Research Centre's 2025 Major Incident Investigation Report, supported by NTI, has identified human error as the predominant cause of major truck crashes in Australia. The report indicates that factors such as inattention, distraction, and inappropriate speed account for a significant proportion of these incidents. - read more |
| ASIC Launches Review into Motor Insurance Pricing Practices 25 Mar 2026: Paige Estritori The Australian Securities and Investments Commission (ASIC) has initiated a comprehensive review into the accuracy and transparency of motor insurance pricing among major insurers, covering approximately two-thirds of the car insurance market. This investigation aims to ensure that insurers comply with legal disclosure requirements and provide clear explanations for premium calculations. - read more |
| AIA Australia's Latest Enhancements to Priority Protection Insurance 24 Mar 2026: Paige Estritori AIA Australia has recently updated its Priority Protection life insurance suite, introducing changes designed to simplify discounts, enhance policy clarity, and support premium affordability. These enhancements, effective from 9 November 2025, reflect AIA's commitment to providing value-driven solutions for policyholders. - read more |
| Life Insurance Comparison: Key Questions to Ask Your Insurer Life insurance is a crucial consideration for middle-aged to older Australians. It provides financial security for your loved ones in the unfortunate event of your death. Understanding the various options available is vital to making an informed decision. - read more
|
| Income Protection vs. Total Permanent Disability: Which Is Right for You? Financial security is crucial in today's unpredictable world, where unexpected events can disrupt the stability and comfort of our daily lives. For Australians, protecting one's income and lifestyle from unforeseen circumstances is a key component of personal finance. - read more
|
| Estate Planning and Insurance: Safeguarding Your Legacy in Australia Estate planning is a critical process often overlooked, yet it serves as the cornerstone of ensuring that your legacy is protected and seamlessly passed on to your loved ones. It's about securing your financial future and guaranteeing that the assets you've toiled to amass are distributed according to your wishes. In the intricate world of asset protection and family security, being well-informed can make all the difference. - read more
|
| Understanding the Role of Life Insurance in Financial Security Life insurance can seem complex at first, but understanding the basics can help demystify this important financial product. At its core, life insurance is a contract between you and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon your passing, in exchange for premium payments. - read more
|
Insurance coverage that pays for the additional living expenses if your home is uninhabitable due to a covered loss.