Due to a combination of a last grab for cash by including $250 million of captial expenditure in the CFA budget over the past 3 years and the ridiculous way that the Baillieu Government has transitioned the move of Fire Service Levy from the Insurance Industry to property rates, insurers were expected to have to increase the FSL rate that they charged their customers. The […]
Let me know what you think
I can find blogging a little frustrating in that you do not know if your message is getting across or the effort you put into it is worth it. I have run an internal blog for my staff which I do every day and have over 4,500 postings but with only a few hundred responses. Having said that the LMI team volunteer that they really appreciate my […]
Extra Cost of Reinstatement v Additional Extra Cost of Reinstatement
I received the following question which is often asked of me: Can you please explain this clause and how it differs from the Extra Cost of Reinstatement (provision 5) under a Mark IV ISR? Regards Chris” (full name and email provided) I share my answer to Chris with followers of the blog: Under and ISR policy my recommendation is that you sub-limit Extra Cost of Reinstatement […]
Question on Metropolitan Fire Service Levy – Charge out Fees despite paying Fire Service Levy
I recieved this question overnight: Hi Allan, I was wondering if you could assist and advise whether you could review the attached and advise whether you have come across this before ? In particular the last paragraph. My client let off some non toxic gas so there is no material damage or third party property damage or bodily injury. Hopefully you may be able to […]
Victoria elects not to follow the National Worksafety laws
Without any fanfare and very little press reaction, the Victorian Premier, Ted Baillieu announced on 12th of April that Victoria would not be proceeding with the adoption of the model Workplace Health and Safety put forward by the Federal Government. Their decision was made following the release of a PwC report which found that the cost of implementing the new WHS legislation would be more than $3 […]
Victorian Fire Service Levy – The Good News – The Bad News
The good news is that the Victorian Government has finally confirmed, that the inequitable Fire Service Levy imposed on the insurance industry causing triple taxation making insurance so expensive, is to be completely removed by 1 July 2013 ready for the 2013 State elections. The bad news is that the Baillieu State Government has extracted a whopping 1/4 billion (not it is not a typo) in […]
Titanic – Part of the history of insurance
With the 100th anniversary of the RMS Titanic hitting an iceberg yesterday and it sinking today with the tragic loss of over 1,500 lives much has been said in the popular press. What has not been mentioned is the part that insurance and in particular Lloyd’s had in the loss. The first ship to pick up Titanic’s distress call was the Lloyd’s signal ship at […]
What do you risk by being dishonest? – Case # 1 – stolen car
The theme that runs through four of the articles I post today centre around failed attempts to defraud an insurer. In each case the dishonesty has been uncovered during the last fortnight and in each case the question has to be asked: was it worth the risk? A police officer in a small town in Victoria noticed a BMW was sitting on the side of the […]
What is at risk by being dishonest? – Case # 2 – changing the date of an accident?
A police officer had a single vehicle accident in a vehicle that he did not have insured. After the accident, he insured the car failing to notify the insurer that the car had pre-existing damage. A year to the day after the first accident he rang the insurer and reported the loss as if it were on this day. He changed the date on the towing invoice so […]
What is at risk by being dishonest? – Case 3 – broker advice
In this case a business man’s son was driving his father’s car when he hit a kangaroo. The father rang to report the accident and in the discussion with the insurance broker the fact that a higher excess applied due to the fact that the son was under 21 years of age. The business man, despite being quite well off, owning many profitable businesses was […]