An Australian Financial Complaints Authority (AFCA) ruling has required Chubb to apologise and pay a complainant $3000 after it failed to respond appropriately to a claim. 

The body corporate lodged a claim in early 2022 relating to flood damage to several units. The insured says it submitted all necessary information and documents to the insurer, but the claim failed to progress. 

It says it was required to email its broker and Chubb multiple times to receive updates on the claim and was not given a reason for why the information it provided did not lead to the claim being expedited. The claimant proceeded to file a complaint with AFCA.

AFCA says it contacted the insurer on four different occasions between May and August last year, requesting a “substantive response” to the complaint, as well as supporting information relating to the claim. 

The ruling highlights that Chubb did not respond to the complaint nor the requested information and that its only communications came in November 2022, when it said that the complaint should have been against the claimant’s broker.

AFCA acknowledged that the broker had communicated poorly with their client but said this did not absolve the insurer’s responsibility to ensure the claim was not unnecessarily delayed. The insured had lodged a separate complaint against its broker.

“The complainant’s information shows they consistently tried to follow up the insurer and broker for updates,” AFCA said. “Often this was without success.”

“In concerns to this particular complaint, I am satisfied the insurer had a much greater obligation than to assume the broker would deal with the complaint.

“Ultimately, it is the insurer’s responsibility to assess the claim, including dealing with the client, if necessary, to progress the claim in a timely manner.”

It says Chubb had “adequate opportunity” to review the complainant’s submission about the handling of the claim but failed to address the concerns.

“The insurer has not provided a substantive response to the complainant’s complaint or AFCA’s request for information,” AFCA said.

“This is despite several requests for it to do so. In these circumstances, it is fair to make a decision based on the material provided.

“The insurer is to compensate the complainant $3000 for the unusual extent of inconvenience, stress and frustration caused by the insurer’s failure to keep the complainant informed of the progress of his claim, and lack of response to their concerns.”

Click here for the ruling.