AFCA Supports RAA Insurance in Vehicle Location Dispute

1

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The son, who initially filed the claim following an accident in April of the previous year, saw his claim denied by RAA Insurance. The insurance provider, based in South Australia, concluded that the vehicle was a total loss but rejected the claim after discovering the car's purchase and registration in Victoria despite frequent visits to South Australia.

During the claims process, the son portrayed himself as the primary driver, asserting minimal use by his mother, the policyholder. However, he later altered his statements to AFCA, stating that the car was never his and was unregistered in Victoria. AFCA found these new assertions unconvincing due to the lack of documentation supporting his position.

The ombudsman involved in the dispute stated that evidence indicated the vehicle was mainly used, registered, and stored in Victoria at the time the policy was taken out. Consequently, it was determined that the policyholder misrepresented the car's usual location and storage when securing insurance coverage.

RAA Insurance referenced their underwriting standards, emphasizing that they do not extend coverage to vehicles registered outside South Australia or the Broken Hill postcode. A declaration from an RAA employee supported this position, confirming that the vehicle’s Victorian registration would have led to denial of coverage initiation.

AFCA observed that such misrepresentation compromised RAA's risk assessment capabilities, justifying the insurer's decision to decline the claim. The omission of accurate information about the vehicle's storage location led to the policy being issued under false pretenses. AFCA concluded that compelling the insurer to honor the claim would be unjust, given the circumstances.

Published:Thursday, 24th Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Rural Affinity and Munich Re Strengthen Agricultural Insurance in Australia

09 Jan 2026: Paige Estritori

In a significant development for Australia's agricultural sector, Rural Affinity has renewed its partnership with Munich Re Specialty - Global Markets under a new five-year agreement. This collaboration, which began in 2006, is set to enhance the availability and scope of agricultural insurance products across the country. - read more

WFI Insurance Highlights Significant Drop in Farm Liability Claims

09 Jan 2026: Paige Estritori

WFI Insurance has reported a notable decrease in farm liability claims across most categories, signaling a positive trend in safety practices within the Australian agricultural sector. The insurer observed a 75% reduction in falls from height over the past year, alongside a 30% decline in impact injuries, marking the lowest level in four years. - read more

Elders Insurance Highlights Increased Summer Storm Risks for Farmers

09 Jan 2026: Paige Estritori

Elders Insurance is urging Australian farmers to prepare for another damaging summer, with claims data revealing the scale and financial impact of storm activity across the country's agricultural regions. Analysis of storm-related farm insurance property claims over the last two years indicates that summer accounts for the highest number of claims nationally. - read more

Insuregroup Achieves Significant Milestone in Truck Insurance Policies

09 Jan 2026: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently achieved a significant milestone by processing over 10,000 insurance policies since its inception. This accomplishment includes a 25% year-on-year increase in policy count, highlighting the escalating demand for comprehensive truck insurance solutions among Australian freight operators. - read more

Queensland Aligns with National Heavy Vehicle Regulator

09 Jan 2026: Paige Estritori

In a significant move towards regulatory consistency, Queensland has transferred its heavy vehicle compliance responsibilities to the National Heavy Vehicle Regulator (NHVR). This transition aligns Queensland with New South Wales, Victoria, South Australia, Tasmania, and the Australian Capital Territory, all of which have already integrated their heavy vehicle regulations under the NHVR's oversight. - read more

Click for more Insurance News