Ride-Share Driver Prevails in Insurance Dispute Over Vehicle Use
Ride-Share Driver Prevails in Insurance Dispute Over Vehicle Use
The driver, who had returned to ride-share work after a lengthy hiatus, was involved in an accident shortly after completing a passenger drop-off. When filing a claim, the driver faced refusal from Auto & General, which cited discrepancies in his policy. The policy depicted the vehicle as designated for “private and commuting” purposes, not for ride-share work.
Auto & General argued that had it known about the vehicle’s use for ride-sharing, the policy would not have been offered. They based their refusal on records showing the driver’s registration with Uber in 2019 and subsequent admissions to doing ride-share work intermittently. Nevertheless, AFCA concluded that such evidence did not substantiate active ride-share use during the time the policy was incepted.
AFCA's examination highlighted that no Uber activity occurred between March 2020 and August of the following year, aligning with the driver’s statement that he resumed service only in October 2024, coinciding with the day of the incident. Moreover, documentation indicated the vehicle was not actively used for Uber when the insurance policy took effect.
AFCA noted that the policy stipulated notifying changes to vehicle use promptly but deemed a few days reasonable for such disclosures. Therefore, the ruling favored the driver, requiring Auto & General to honour the claim, cover hire car expenses, and compensate the driver $1500 for stress due to the initial rejection.
Auto & General's defense cited that their policy excludes claims incurred while carrying passengers for hire. However, AFCA found this inapplicable since the accident occurred post-drop-off with no fare-paying customers present. Although instructed to process the claim, the insurer retains the right to terminate the policy post-claim acceptance.
This decision underscores the importance of clear communication between insurers and policyholders concerning any changes in vehicle usage, minimising potential disputes over claims.
Published:Wednesday, 4th Jun 2025
Source: Paige Estritori
Share this news item:
| Regulatory Bodies Demand Clarity on Duration-Based Insurance Premiums 06 Jun 2025: Paige Estritori Australia’s leading financial regulators, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA), have raised concerns regarding the practice of duration-based pricing in life insurance products. They have emphasised the need for insurers to improve transparency, ensuring that consumers are fully informed about the long-term costs associated with initial premium discounts. - read more |
| Young Driver Left Uncovered Due to Policy Misstep 05 Jun 2025: Paige Estritori A policyholder faces a denied claim after inadvertently excluding his newly licensed 21-year-old son from his car insurance policy, highlighting a common oversight in age-specific exclusions. Following a collision involving his son, who recently earned his licence, Hollard Insurance declined the claim based on policy terms that excluded drivers under 25, unless accompanied by a qualified adult. - read more |
| NSW Floods Highlight Critical Insurability Crisis 05 Jun 2025: Paige Estritori Recently, New South Wales has been severely affected by major floods, with damages to around 10,000 homes and businesses. The Insurance Council of Australia has already received over 6,000 claims from the Mid North Coast and Hunter regions, while countless families face displacement as their homes become uninhabitable. - read more |
| Ride-Share Driver Prevails in Insurance Dispute Over Vehicle Use 04 Jun 2025: Paige Estritori A ride-share driver recently won a significant claim dispute against an insurer that initially denied his claim following a traffic accident. The Australian Financial Complaints Authority (AFCA) sided with the driver, determining that Auto & General could not prove he misrepresented his vehicle use when purchasing his insurance policy. - read more |
| Streamlining Life Insurance: New Digital Questionnaire Initiative Launched 04 Jun 2025: Paige Estritori In a groundbreaking development for the Australian life insurance sector, a new digital initiative promises to simplify the process of providing medical information for life insurance applications. The collaboration between Acenda, formerly known as MLC Life, and EQ Pathology introduces “smart” digital questionnaires to streamline data collection. - read more |
| Record Highs in UK Pet Insurance Payouts Reflect Rising Vet Costs 03 Jun 2025: Paige Estritori The landscape of pet insurance in the UK has marked another milestone, with payouts reaching an unprecedented £1.23 billion ($2.36 billion) last year. This 4% increase over the previous year is attributed to soaring veterinary fees, reflecting broader inflation trends in the industry. - read more |
| Keeping Your Family Protected: The Importance of Adequate Health Insurance Coverage The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - read more
|
| Separating Fact from Fiction: The Myths of Income Insurance Revealed Have you ever thought about how you would manage financially if you couldn't work due to an illness or injury? Income protection insurance is designed to replace a significant portion of your income if you find yourself unable to earn for an extended period. It's an essential safety net, providing peace of mind and financial stability during times of uncertainty. - read more
|
| The Role of Life Insurance in Your Overall Financial Strategy Financial planning plays a pivotal role in managing your economic resources effectively. By assessing your income, expenses, and goals, you can create a plan that helps achieve financial security. A comprehensive financial plan covers saving, investing, budgeting, and managing liabilities to secure your future. - read more
|
| Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more
|
| Top 10 Tips to Find Affordable Health Insurance in Australia Finding affordable health insurance can be a daunting task, particularly in a landscape as diverse as Australia’s. With a myriad of options available, it's crucial to understand the financial support mechanisms in place that can ease the burden of healthcare costs. One such mechanism is the health fund rebate, a key feature of the Australian health insurance system designed to make healthcare more accessible. - read more
|
| Trauma Cover: Calculating Adequate Protection for Life's Unexpected Moments The financial fabric of our lives consists of both planning and safeguarding against the unforeseen. Trauma cover, a lesser-known but crucial aspect of personal insurance, provides this protection by offering a lump sum payment upon diagnosis of specific serious illnesses or injuries. In the tapestry of financial planning, it acts as a vital safety net, ensuring that unexpected health crises do not lead to monetary distress. - read more
|
A very broad term for insurance covering liability exposures for individuals and business owners. It provides broad coverage, generally including all exposures for property damage and bodily injury.