Claimant compensated after 'avoidable' altercation with repairer

A complainant who alleged that he was assaulted by a staff member of an insurer-appointed repairer will be compensated after an Australian Financial Complaints Authority (AFCA) ruling found the insurer’s mishandling of the motor claim caused an “avoidable and unnecessary inconvenience”.

On December 10 last year, the claimant contacted IAG to make a complaint about the repairer’s conduct after he raised concerns about the service process.

The insurer’s claims notes showed the complainant told IAG there had been a “heated” telephone conversation because the repair process had been extended.

The policyholder said the extension caused inconvenience to him because he would incur additional hire car costs.

The complainant also alleged that a staff member of the repairer acted verbally and physically aggressive towards him when he went to pick up the vehicle, and had to be held back by others.

IAG offered to waive the excess on the complainant’s comprehensive motor vehicle policy and gave access to its customer support program.

The claimant said he appreciated IAG’s actions but that it was not enough. He said the insurer had been “dismissive, disregarding and diminishing” and refused to take responsibility for the repairer.

The insurer’s claim notes noted a comment from the repairer the day before the event that said the complainant had been “difficult from the start” because he was not entitled to a hire car and wanted the repairs completed within a day.

The repairer said the claimant was immediately hostile when he came to pick up the vehicle and physically shoved staff members.

AFCA acknowledged that the incident was reported to the police, and that the police must handle the assault allegation.

However, it did observe CCTV footage of the altercation, which it said reinforced the complainant’s account.

“I consider the manner in which [the repairer’s] staff member was acting was intimidating and inappropriate,” AFCA said.

“I do not consider that an earlier disagreement over the phone excuses the insurer or its repairer from acting this way during the repair process.”

It said the complainant’s earlier frustrations arose because he was organising the hire vehicle himself, despite having the optional benefit on his policy.

AFCA said if the benefit had been discussed between the insurer and the client, “some of the inconveniences could have been avoided”. IAG offered to reimburse any of the complainant’s hire car costs upon receipt of proof of costs.

The ruling acknowledged the insurer’s actions to remedy the issue but awarded the complainant $2000 for non-financial loss due to inadequate claims handling.

“It is expected that both parties will be respectful and cooperative with each other during an insurance claim,” AFCA said.

Click here for the ruling.