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 Ayranci’s registration as a builder has been revoked, and he has been disqualified from the industry for three years — the maximum duration allowed under current legislation.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:
| BizCover and BHSI Collaborate to Provide Professional Indemnity Insurance for SMEs 25 Feb 2026: Paige Estritori In a significant development for small and medium-sized enterprises (SMEs) in Australia, BizCover has been appointed as the exclusive direct online distributor for Berkshire Hathaway Specialty Insurance's (BHSI) professional indemnity (PI) insurance products. This partnership, effective from 1 October 2025, enables SMEs to access BHSI's PI coverage directly through BizCover's digital platform. - read more |
| Sterling Insurance Enhances PI Offerings with New Lloyd's Binding Authority 25 Feb 2026: Paige Estritori Sterling Insurance has recently secured a new professional indemnity (PI) binding authority with Lloyd's, a move that promises to provide Australian brokers with greater control over product offerings and pricing structures. This development is part of Sterling's ongoing commitment to delivering tailored insurance solutions that meet the specific needs of niche and complex risk sectors. - read more |
| Arch Insurance Australia Strengthens PI Team with Senior Underwriter Appointment 25 Feb 2026: Paige Estritori Arch Insurance Australia has announced the appointment of Jacqueline Kilday as Senior Professional Indemnity (PI) Underwriter for the Northern Region, effective immediately. This strategic hire underscores Arch's commitment to expanding its professional indemnity capabilities and providing comprehensive coverage solutions to clients across New South Wales, Queensland, the Australian Capital Territory, and the Northern Territory. - read more |
| NSW Enforces Stricter Strata Maintenance Laws 25 Feb 2026: Paige Estritori New South Wales has introduced a series of reforms aimed at strengthening the maintenance and repair obligations of strata properties, enhancing the safety and integrity of these communities. Effective from November 2025, these changes grant NSW Fair Trading the authority to issue compliance notices and enter enforceable undertakings with owners' corporations that fail to meet their maintenance responsibilities. - read more |
| The Essential Guide to Calculating Your Income Insurance Coverage Income protection insurance is a type of policy designed to provide you with a financial safety net in the event that you are unable to work due to illness or injury. Its core purpose is to replace a portion of your income, helping you to maintain your standard of living until you're able to return to work. It's an essential consideration for anyone who relies on their income to support themselves and their families. - read more
|
| Top 5 Financial Tips for Australian Young Families Starting a family is one of life's most rewarding experiences, but it also comes with a unique set of financial challenges. For young families in Australia, where the cost of living can rise quickly, having a solid financial plan is crucial. Financial planning is not just about managing money; it's about creating a sense of security and peace of mind for your loved ones. - read more
|
| Understanding Life Insurance: Securing Your Family's Future Defining life insurance and its importance: Life insurance is a pivotal financial product designed to protect your loved ones from economic hardship in case of your untimely death. It acts as a safety net, ensuring that your family can maintain their standard of living, cover outstanding debts, and afford future expenses like education and retirement. - 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
|
the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".