FMG News
Insurance & Savings Ombudsman
The Insurance & Savings Ombudsman (“ISO”) can now consider complaints up to $150,000 and complaints made by small businesses.
Karen Stevens, the ISO, is delighted with the changes and commented that “real progress has been made”.
Until 1 July 2005, the ISO had a $100,000 limit on a complaint for any claim made to a participating insurance or savings company. The ISO could only accept complaints from individuals about personal domestic insurance. Now, the ISO can accept complaints up to $150,000 and also those made by small businesses (with no more than 5 employees and an annual turnover of less than $400,000).
Ms Stevens has been concerned about the lack of cover for small businesses. She referred to one complaint where the owner of a small business said “in the real world, just to get a legal opinion will cost $10,000 and then the drama to take it to court means small business always loses. A more economical way to get justice is required for small business …”
Now, individuals and also small businesses can take complaints to the ISO about insurance claims up to $150,000. This is a very positive step for consumers and great for customer relations in the industry.
David Russell of the Consumers Institute said he is also extremely pleased with the changes. Mr Russell commented “the broader the coverage given to policy holders by the ISO Scheme, the better for consumers”.
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