A recent decision in an Australian Financial Complaints Authority (AFCA) case has ruled in favour of a business seeking coverage for damage to machinery, despite the hiring company not adhering to all prescribed safety guidelines.
The matter involved a Winlet 575 Glass Robot that sustained damage when its stabiliser failed during operation.
The incident occurred in June 2017 when the glass handling machine tipped over while reversing. A representative from the involved business suggested that the machine's anti-crush functionality might have inadvertently been activated, causing it to lurch and topple under the load of a substantial glass sheet that measured 9.5 metres in height. Speed was also cited as a potential factor.
QBE, the insurer, initially rejected the claim based on assessments from the machine supplier's managing director and their own loss adjuster. These experts contended that the mishap was likely due to the glass panel being lifted off-centre and the boom being set too high during operation.
In contrast, the business's own glass specialist attributed the incident to operator error. Their argument highlighted the challenges in precisely aligning the lifting point with the panel's centre of gravity, particularly as it shifts when the machine rotates.
AFCA's ruling pointed out that, while the glass should normally be lifted at its centre of gravity, as per the machine's manual, the actual situation involved more complex dynamics. The authority found no definitive evidence that not adhering fully to these instructions directly led to the incident, and thus deemed the insurer's exclusion inapplicable. Furthermore, AFCA cast doubt on the supplier's MD's technical conclusions and his potential conflict of interest.
Ultimately, the decision underscores the importance of nuanced technical assessments in insurance disputes and calls for insurers to thoroughly investigate all claims aspects.
Looking forward, this ruling could influence future disputes where operational mishaps intersect with technical manual prescriptions, potentially prompting insurers to revisit their evaluation protocols and company guidance concerning machinery operation claims.
Published:Wednesday, 6th Aug 2025 Source: Paige Estritori
Recent research from Victoria University has provided new insights supporting the proposal to abolish insurance taxes in Australia. The study, conducted by Jason Nassios and James Giesecke, examined the effects of varying rates on four primary taxes: personal income tax, goods and services tax (GST), stamp duties, and insurance duties. Unlike previous studies, this research assessed the economic impacts of these taxes as their rates fluctuated, rather than analyzing them at static levels. - read more
A recent decision in an Australian Financial Complaints Authority (AFCA) case has ruled in favour of a business seeking coverage for damage to machinery, despite the hiring company not adhering to all prescribed safety guidelines. The matter involved a Winlet 575 Glass Robot that sustained damage when its stabiliser failed during operation. - read more
In a notable victory, Brisbane-based IVAA Claims emerged as the winner of the esteemed Beyond the Buzzwords pitch contest. The company, which specializes in jewellery validation assessments and settlement guidance for contents claims, impressed the judges with its innovative approach to tackling insurance fraud. - read more
The Council of Australian Life Insurers (CALI) has highlighted a significant gap in access to affordable, professional life insurance advice among young Australians. A recent study conducted by CALI reveals that only 11% of 18-to-34-year-olds obtain formal financial guidance, with the majority relying instead on advice from informal and often inaccurate sources such as friends, family, social media, and online forums. - read more
The process of obtaining Personal Medical Attendant Reports (PMARs) has been a significant administrative issue for Australian life insurers. General Practitioners (GPs) often face an overwhelming amount of paperwork, dedicating nearly a full workday each week to administrative tasks. PMARs, essential for assessing applicants’ health for life insurance, have traditionally been cumbersome and time-consuming, with many GPs delaying their completion. However, the development of digital solutions is set to transform this process and improve efficiency drastically. - read more
Starting on October 1, a comprehensive review of the voluntary Life Insurance Code of Practice will commence, with a focus on assessing the effectiveness of revisions made to its regulations and standards in 2023. The Council of Australian Life Insurers (CALI) has appointed Peter Kell to lead this independent review and deliver the final report by June 30 next year. - read more
In today's fast-paced world, ensuring financial security and safeguarding your assets is paramount. This is especially true for truck owners, who not only have to manage their on-road operations but also need to adequately protect their investment. For many, truck insurance is a critical component of financial planning, but it's vital to delve deeper into the structures and costs that these policies entail. - read more
Truck insurance is a crucial safeguard for anyone operating commercial vehicles on Australian roads. It offers financial protection against a variety of risks that are inherent to the trucking industry. With trucks being significant assets and essential tools for many businesses, the right insurance ensures that you can continue operations without unexpected financial burdens from accidents or other incidents. - read more
Truck insurance is more than just a legal requirement; it's a crucial part of securing your livelihood as a truck owner in Australia. Understanding the costs involved not only helps you budget effectively but also ensures you’re not caught off guard by unexpected expenses. By grasping what your premiums cover and what factors influence them, you can make informed decisions that align with your financial goals. - read more
Truck insurance is a critical concern for both business owners and individual operators within Australia. Given the significant investment that a truck represents, safeguarding this asset with appropriate insurance coverage is not just prudent, but necessary. - read more
Knowledgebase
Whole Life Insurance: A type of life insurance that provides coverage for the insured's entire lifetime, with a savings component that builds cash value.
