An underwriting agency has had some of its Melbourne office staff counselled by a trauma specialist after an officer from the Victorian Fire Services Levy (FSL) Monitor threatened to have a receptionist arrested for obstruction.

The agency’s Sydney-based CEO, who has asked that he not be identified, says the incident should serve as a warning to Victorian insurance operations to brief their staff on how to handle similar intrusions.

“I am furious about this,” the CEO told insuranceNEWS.com.au. “There was absolutely no reason for this type of behaviour. We’re not criminals. The monitor’s office is free to examine our files at any time.”

Staff from the office of FSL Monitor Allan Fels have entered a number of brokers’ offices seeking information after receiving complaints last year that the levy was still being charged following its abolition on July 1.

A spokesman for the monitor told insuranceNEWS.com.au that officers have had to execute a search warrant in only one instance.

Ausure’s Echuca office Director Tim Dale avoided having a warrant served, but told insuranceNEWS.com.au his staff nevertheless felt intimidated.

He says there had been no contact with the monitor’s office before four officers arrived wanting access to client records, tax invoices and policy schedules.

He agreed to the request to avoid being served with a search warrant, and allocated three staff to help with the task over the next three-and-a-half hours.

“I didn’t feel intimidated myself, but I did feel it wasn’t right,” Mr Dale said. “No-one told me if they thought we had breached anything and I’ve had no feedback.”

He is not aware of any complaint against the company.

The monitor’s office told insuranceNEWS.com.au it has not received complaints from any insurers or brokers about visits from its representatives. The spokesman says the staff involved are “experienced investigators who have considerable experience in the proper execution of warrants”.

“They did not ‘raid’ the brokers’ offices.”

An investigation is continuing into the activities of one broker who refused entry to investigators.

“The monitor’s staff therefore entered under a search warrant,” the spokesman said. “[They] behaved at all times in an appropriate manner in the face of continuing resistance to the quiet execution of the warrant.”

The Sydney CEO says an officer whose business card identifies him as an “enforcer”, arrived with three others at the company’s Melbourne office demanding to examine the company’s files.

“We’ve always co-operated with government agencies, and we’re very confident not a zack of levy money has ever been mishandled They don’t need to barge in waving warrants and making threats like they’re Eliot Ness.

“The receptionist had no idea what this was about, and told him the manager was out of the office but would be back shortly and asked them to wait,” the CEO said.

“He then told her he had control of the office and warned her he could call the police and have her arrested for obstruction unless she gave him immediate access.

“She was traumatised. I’ve had to have her and other staff counselled as a result of this. But when I spoke to [the officer] by phone, he didn’t seem to think that walking into an office unannounced and threatening to have people arrested was out of line.

“He just kept saying he had a warrant, like that was the only excuse he needed. I’m still incredibly angry that these guys think that’s appropriate behaviour.”

Professor Fels last year warned brokers he was investigating complaints by policyholders had been charged the FSL after it was abolished on July 1 last year.

The monitor had seen incorrect invoices and issued notices to brokers and insurers to provide information.

Not all the instances had been fully explained and when responses were demonstrably incomplete or inaccurate, staff had been sent to a number of brokers’ premises to follow up.

* Any companies which have had similar visits from the monitor’s staff are invited to contact insuranceNEWS.com.au at 03 9499 5538 to recount their experiences. 

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