A driver being sued for more than $150,000 after he accidentally accelerated through a T-intersection has lost a dispute with his broker over non-disclosure of his driving and claims history. 

The man, who speaks limited English, had a six-month licence cancellation in early 2021, and also made three motor vehicle claims in recent years. 

This was not shared with the insurer in mid 2021, when broker Haywood Wilkins & Associates (Vic) arranged comprehensive motor insurance for him online via a representative.  

In September 2021, he says he was dizzy and accelerated in error, colliding with another driver. 

The insurer initially settled for single vehicle damage, but the other driver later issued legal proceedings seeking more than $150,000. The insurer declined the claim, saying the motorist had failed to disclose the licence suspension at policy inception, and also that the damage to the insured vehicle was not consistent with his report of the car accident. 

The driver took the matter to the Australian Financial Complaints Authority (AFCA) seeking cover for his loss from the broker, saying it had failed to record his driving history. 

AFCA said while the broker should have kept better records, the information did not show it failed in its duty of care. It was also not established the client could have obtained alternate cover elsewhere.  

“The exchanged material does not show the complainant disclosed his driving and claims history to the broker prior to incepting the policy,” AFCA said. “If the complainant had, it is reasonable to expect he would have been told that he could not get insurance cover. It is therefore not fair to require the broker to indemnify the complainant.” 

The broker’s representative said he had asked whether the driver had any previous insurance claims or driving offences and was advised the licence had never been cancelled. The form was completed electronically and recorded ‘No’ to questions about driving offences and insurance claims. 

No dated file notes or specific details of the conversation were kept or recorded. A copy of the document reportedly completed by the broker was provided to AFCA, but was not signed by the parties or dated.  

The broker disputed the authenticity of email exchanges provided by the car owner to AFCA.  

These alleged its representative wrote that he was prepared to commit a fraudulent act to obtain cover. 

“There are legitimate concerns about the veracity of the email exchange,” AFCA’s ombudsman said.  “An allegation of fraud is a serious allegation and requires clear and cogent evidence in support. There is no corroborative evidence to support this allegation. Given the concerns present, I have not relied on this information. 

“I am not satisfied the complainant can show (the broker representative) acted fraudulently or that he sought to suppress this information from the insurer to secure cover.” 

The representative has since left Haywood Wilkins & Associates, which trades as HWA Insurance Brokers. See the full ruling here.