Complainant who threatened broker loses dispute

26 May 2022

Brookvale Insurance Brokers has won in a dispute over alleged losses suffered by a client-turned-complainant who had demanded money and threatened to physically assault an employee.

The broker had acted for the client in relation to several claims made under the commercial vehicle policies it had arranged, until October 30 2020 when it resigned as his representative. At the time of the resignation, three claims were still not settled.

Brookvale says it made all reasonable attempts to arrange settlement of the claims but was unable to do so due to the complainant’s non-cooperation. It says it quit as his representative after threats were made against the employee.

“The broker resigned as the complainant’s representative due to the repeated failures to provide information and instructions and verbal abuse and threatened physical assault made by the complainant,” the Australian Financial Complaints Authority (AFCA) says in its ruling of the dispute.

“I accept in the circumstances any ongoing commercial relationship was untenable.”

In the letter of resignation the broker provided details of the complainant’s current insurance policies, contact details to resolve open claims and copies of recent correspondence about those claims.

The broker’s decision to terminate its working relationship with the complainant came after a meeting on October 14 2020 when he demanded money from the broker’s employee, heaped verbal abuse and threatened physical assault.

The complainant claimed the broker’s conduct caused him significant losses. He says the broker delayed the claims to the point where they were not settled prior to its resignation as his representative and that he was not told why the broker resigned. He also says the broker misled him to believe he had an agreed value for the policies he had taken up.

However, evidence provided to AFCA shows the policies were not based on “agreed value” and that the broker had acted appropriately in seeking more information from the complainant, including clarification of the invoices and loss date.

“There is no evidence that the broker’s conduct, or resignation caused or contributed to the complainant’s loss,” AFCA says.

Click here for more from the ruling.