Calls to broker facility rise
The Insurance Brokers Dispute Facility’s toll-free number received 52% more calls last year – a total of 3,388 – compared with its first year of operation in 1996.
Increased use of the toll-free number reflects high consumer awareness and usage of the IBDF for general advice to consumers,” the IBDF’s just-released annual report says. The facility registered 161 contacts – an increase of 19% over 1999 – with 149 of them being categorised as actual complaints. This compared to 97 in 1999.
Noting that it receives many queries from third parties or solicitors dealing with insurance brokers, the report said IBDF can only handle complaints from insureds against their insurance broker. “The facility will attempt to assist anybody and/or refer the caller to appropriate other facilities,” the report said.
IBDF Referee David Letcher named three brokers in his section of the facility’s annual report. He said South Australian company CD Insurance Brokers – whose registration has lapsed – did not comply with his decision regarding obligations to the insured.
Although Quantum Insurance Brokers of North Parramatta, NSW, was found not to be at fault, “regrettably the broker failed to co-operate with the facility in respect of requests for information and documents. A third broker was referred to ASIC, which refused to renew its registration and disqualified it for two years.
“As the broker is still in dispute with the facility and ASIC, I do not consider it appropriate to provide details,” Mr Letcher said.