Insurer Rejects Claim Over Diesel Fluid Mix-Up
Insurer Rejects Claim Over Diesel Fluid Mix-Up
The policyholder argued that according to the product disclosure statement (PDS), only "incorrect fuel usage" was excluded, and as AdBlue is technically not a fuel, her claim should be valid. Additional grievances arose after alleging the insurer’s tow service inflicted further damage to her car, necessitating a new steering rack and wheel realignment.
Suncorp acknowledged the issue with its initial claim rejection, where the decision was based solely on the original PDS. However, the insurer pointed to a supplementary product disclosure statement (SPDS), which explicitly excludes coverage for damage resulting from using fluids not recommended by the vehicle's manufacturer. This key differentiation was reportedly communicated to the policyholder during her policy renewal.
The Australian Financial Complaints Authority (AFCA) sided with Suncorp, determining that the insurer did not mislead the customer about her claim status. While Suncorp admitted to referencing outdated PDS wording initially, AFCA deemed their reliance on the updated SPDS appropriate and found no obligation for the insurer to cover the incident. Additionally, AFCA found limited evidence to support the policyholder's accusations regarding damage caused by the towing service, reinforcing Suncorp's account of a winched, non-dragged vehicle recovery.
Despite these rulings, AFCA ordered Suncorp to compensate the policyholder $3000 for delay-induced inconveniences during the claim process, which left her without her vehicle for an extended period, citing the resulting undue stress and hassle.
This case highlights the importance of clear communication and understanding of policy amendments, emphasizing the role supplemental documents play during insurance assessments. Consumers are reminded to review documentation thoroughly during renewals to grasp the full scope of their insurance protections and exclusions.
Published:Wednesday, 16th Apr 2025
Source: Paige Estritori
Share this news item:
| Consumer Credit Insurance Decision: AFCA Rules Against Refund Request 04 Nov 2025: Paige Estritori An Australian man seeking a refund on his paid premium for consumer credit insurance (CCI) has been denied by the Australian Financial Complaints Authority (AFCA). The man argued the insurance was mis-sold to him, claiming he was led to believe the coverage was essential when he acquired it with his credit card in 2015. - read more |
| Qantas Travel Insurance Honoured with Mozo Experts Choice Award 2024 04 Nov 2025: Paige Estritori Qantas Travel Insurance has been recognised in the 2024 Mozo Experts Choice Awards for Travel Insurance, showcasing its exceptional value for their Annual Multi Trip Travel Insurance policy. - read more |
| SCTI Highlights Top 10 Costliest Travel Insurance Claims of 2024 04 Nov 2025: Paige Estritori Southern Cross Travel Insurance (SCTI) has unveiled its top 10 most expensive international travel claims made by Australian travellers in 2024, shedding light on the significant financial risks associated with unforeseen incidents abroad. - read more |
| Significant Rise in Home Insurance Premiums Poses Challenges for Australian Homeowners and Lenders 04 Nov 2025: Paige Estritori Recent reports indicate that Australian home and contents insurance premiums have surged by up to 65% over the past five years. This substantial increase is outpacing both general consumer inflation and wage growth, leading to significant financial strain for homeowners and potential risks for mortgage lenders. - read more |
| The Ultimate Guide to Comparing Health Insurance Plans in Australia Australia is renowned for its iconic landmarks, diverse ecosystems, and robust healthcare system. While the public healthcare system, Medicare, provides essential health services, it might not cover everything. The allure of private health coverage lies in its promise of broader options, reduced wait times, and coverage for services not included in Medicare, like dental and optical care. - read more
|
| The Importance of Comparing Health Insurance Extras for Maximum Savings Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
|
| The Single Parent’s Guide to Securing Your Child’s Financial Future Single parenting brings with it a mosaic of responsibilities and challenges, not least of which is securing a stable financial future for your child. The rollercoaster of raising a child alone often means that planning for the future can take a back seat to the day-to-day demands of parenting. Unexpected illnesses and injuries can compound these challenges, causing stress to multiply and plans to go awry. - read more
|
| Tax Deductions and Income Protection: Maximizing Your Benefits When life throws unexpected health challenges your way, having a solid plan to protect your income is crucial. Income protection insurance is designed to provide financial support if you're unable to work due to illness or injury, allowing you to focus on recovery without the added stress of financial burden. - read more
|
The maximum amount an insurer will pay for all covered losses during a policy period.