A 74-year-old has been awarded $2550 in compensation for “undue delays” after she waited nine months for her vehicle to be repaired following a collision.

Her insurer, Auto & General, recognised she had been inconvenienced, offering her $1050 in compensation, but said there was a delay in obtaining parts that was outside its control. 

She rejected that amount and took the matter to the Australian Financial Complaints Authority (AFCA), which says a further $1500 payment is appropriate, bringing the total to $2550. 

The long-standing Auto & General customer “suffered an unusual degree of inconvenience or interference with her peace of mind because of the undue delay in repairs and the handling of the claim”, AFCA says. 

The woman lodged the comprehensive car cover claim a year ago when her 2019 Hyundai wagon, which was insured for market value, was involved in a crash. Auto & General accepted the claim and towed the car to its repairer. 

The insurer said the woman was at fault for the accident and was therefore not eligible for a no-fault hire car, and she had not chosen an optional “accident hire car” policy benefit. 

The vehicle could not be considered a total loss because it was economical and safe to fix, but repairs were delayed as parts such as a new suspension were on back order and the repairer was unable to estimate a completion date. 

The cost of repair was assessed at $17,404 but the job was not completed until November, and the woman’s requests that the vehicle be written off given the delays were unsuccessful. 

The complainant, who denied she was at fault for the collision, told AFCA she had experienced major inconvenience, social isolation, stress and anxiety, and had relied on rides from Uber or family members, who lost paid work.   

There was a lack of service and communication from the insurer, she said, and family members spent many hours trying to resolve the matter. Auto & General told her it would escalate the matter but did not. The insurer “showed no compassion, respect or empathy”, she said, and her case was not taken seriously until she contacted the insurer’s board members. 

Communication by the insurer was inadequate, AFCA’s ombudsman says.  

“The complainant did not appear to have been informed that there was a delay in parts until August 31, when she enquired as to the status of repairs,” the ruling said. 

“I acknowledge that the policy excludes consequential losses ... and states the insurer is not liable for costs associated with parts or repair delays. However, based on the available information, I consider there have been unreasonable delays in repairs and the insurer’s offer of $1050 compensation does not fairly compensate the complainant for her overall experience with the claim. 

“The insurer has not explained whether it made any efforts to expedite completion of the repairs. The insurer has acknowledged that no attempt was made to source alternative parts and that, had it done so, repairs may have been completed sooner.” 

AFCA says Auto & General could have offered a hire car outside policy terms, or paid the woman the price of unavailable parts. 

“The insurer has acknowledged that it had the opportunity to assist in the progression of the complainant’s repairs and did not act,” the authority said.

See the ruling here.