Home and Contents Insurance Deal Cause for Concern

A consumer group which has secured a reduction in home and contents insurance premiums for its members has drawn criticism from the National Insurance Brokers Association which fears the focus on cheap premiums is sending the wrong message to consumers.

The One Big Switch consumer network, headed by David Issa – former CEO personal insurance at IAG – used its 70,000 plus members to broker a deal with Coles Insurance, which could see customers saving up to 40% on their premiums. The massive 40% reduction combines discounts already on offer through Coles Insurance plus an exclusive 13% discount made available only to One Big Switch members.

With issues such as under-insurance and its devastating effects regularly making headlines, the focus on cheap premiums is ill advised. Insurance brokers go to great lengths to ensure their customers are not motivated by the lowest premium on offer but rather by the policy features and scope of cover.

One Big Switch along with News Corp who supported the promotion, receive a commission for each policy taken out.

As One Big Switch is a referral service and does not provide financial advice, they are exempt from requiring an Australian Financial Services License, adding to NIBA’s concerns that consumers may be misled.

Anyone with queries about the scope of their cover is encouraged to contact their insurer or broker immediately rather than wait until after a claim has occurred.

/0 Comments/by

Home Fire Safety Checklist

The end of Daylight Saving signifies the arrival of cooler conditions, reducing the threat of bushfires across the country and easing the minds of those in bushfire prone areas. However the cooler weather brings with it another risk as we head indoors to keep warm.

House fires during the winter months are responsible for almost half of fire fatalities in Australia every year and authorities say that most accidental house fires are preventable.

Although home and contents insurance plays an important role in protecting you against losses caused by fire, your greatest defence against house fires is early preparation.

We’ve put together a checklist to help you identify and manage fire risks in your home.  For more information on fire safety, visit the CFA website or the fire authority in your state or territory.

Smoke alarms

  • Smoke alarms are compulsory for all residential buildings.  For added protection, install a smoke alarm in every room.
  • Change smoke alarm batteries at least once every year.
  • Test smoke alarms monthly. If a smoke alarm isn’t working, replace the battery immediately then test again to make sure it is working.  Non-working smoke alarms should be replaced straightaway.  Remember that only working smoke alarms can save lives.
  • Smoke alarms are manufactured to a standard which requires them to perform for ten years.  After this time they need to be replaced.
  • Gently vacuum smoke alarms once or twice a year to remove dust build-up.

Fire places and wood heaters

  • Clean chimneys and flues regularly.
  • Use a fire screen to help prevent the escape of sparks and embers.
  • Ensure fires are extinguished before going to bed or leaving unattended.

Heaters and electrical appliances

  • Keep clothes and towels etc away from heaters.
  • Clean the lint filter in clothes dryers between each load.
  • Switch appliances off at the wall when not in use.
  • Don’t overload power boards.  If you need more power points, have them installed by a qualified electrician.
  • Replace faulty appliances immediately.

Around the home

  • Have an electrician check the wiring in your house – if your home is old, it may need rewiring.
  • Have a safety switch installed by a qualified electrician.  This can help prevent electric shocks as well as fires.
  • Have a fire escape plan that the whole family is familiar with.
  • Keep a working fire extinguisher on hand and make sure you know how to use it.
  • Never leave burning candles, incense or oil burners unattended and keep them away from flammable items.
  • Keep matches and lighters out of the reach of children.

Remember that early preparation is key to protecting your family from house fires

/0 Comments/by
,

Understanding Your Duty of Disclosure

 

Each time you take out a new insurance policy, or renew an existing insurance policy, you are entering into a new contract with the insurer. Under the Insurance Contracts Act 1984 you are required to tell your insurer any information you know or may reasonably be expected to know, which may affect their decision to insure you and on what terms. This is called your Duty of Disclosure.

This duty also applies when you extend, alter, vary or reinstate an insurance policy.

You must also advise your insurer if anything changes during the term of your policy. In some cases, changes to your circumstances can result in the cancellation of your insurance policy, for example, if you modify your vehicle or you are convicted of a criminal offence.

If you do not advise your insurer of something which may affect the terms of your policy, youmay be found to be in breach of your Duty of Disclosure and the insurer may deny a claim.

Here are some examples of changes which may affect particular types of insurance:

Motor Vehicle Insurance

  • There is someone driving your vehicle who is not listed on your policy
  • The garaging address of your vehicle has changed

Home and Contents Insurance

  • You have started running a business from home
  • You have undertaken or are in the process of undertaking renovations to your building

Business Insurance

  • Your expected annual turnover has changed
  • There are changes to your business activities

Some information is relevant to all types of insurance policies and should be communicated to your insurer.

For example:

  • You have been declared bankrupt
  • You have been charged with a criminal offence
  • You have been denied insurance by an insurer

However, under the Insurance Contracts Act you are not required to tell the insurer:

  • Any information which reduces the risk
  • Information which is of common knowledge
  •  Information which the insurer knows or in the ordinary course of their business, ought to know.

If you are unsure whether something should be disclosed to the insurer, discuss it with your broker. Your broker will know if the information is relevant and will advise your insurer accordingly. 

To discuss your Duty of Disclosure and how it affects your insurance, call us on 1300 PROFIN (1300 776 346).

/0 Comments/by
,

Why use an insurance broker?

 

It takes a professional to guide you through the complex world of insurance.

Insurance brokers are specialists in their field, with the experience and up-to-date knowledge required to give you expert advice on your insurance needs.

Whether you require insurance for your personal assets or your business, an insurance broker works with you towards establishing a complete risk management portfolio.

 

An insurance broker can:

tickblack Save you time

tickblack Save you money

tickblack Give you expert advice on the risks you face and the types of insurance cover available

tickblack Provide you with unbiased advice on a wide range of insurance policies

tickblack  Handle claims on your behalf

tickblack  Review your insurances annually to ensure you are getting the best value cover

Professional Insurance Brokers have been providing practical insurance solutions to clients for over 30 years.

We make it our job to understand the risks our clients are exposed to and find you the best policy to suit your needs.

Contact us today to find out what we can do for you. Call 1300 PROFIN (1300 776 346), email us or Live Chat during business hours.

/0 Comments/by

Reforms May See End to Millions of Tax Returns

Potential reforms could put an end to lodging a tax return for millions of Australians.

The catch? You’ll have to trust the tax office.

Taxpayer information such as salaries and bank account interest is already provided to the Australian Taxation Office and they are now working on new technology that will see this information used to prepare tax returns internally and sent to the taxpayer for approval.

A spokesperson for the ATO has stated that this new technology has been identified as a possible service initiative and that they are working towards implementing it later this year.

More complex tax returns will still need to be completed the traditional way however these changes could see around 4.5 million Australians alleviated of the burden of preparing their own returns.

Any changes to tax regulations will be preceded by the first of the Government’s new biannual Repeal Days, to be held later this month. In line with the Abbott government’s election promise to cut red tape, Repeal Days will see over 10,000 pieces and more than 50,000 pages of egislation and regulations scrapped.

The repeal of laws and regulations will have a bearing on every sector of the economy and is part of the Abbott government’s plan to reduce red tape by $1 billion a year.

/0 Comments/by

Privacy Act Reform 2014

Significant changes to the federal Privacy Act came into effect earlier this month, making it vital that businesses have a clear procedure in place for the management of customer information.

Businesses with an annual turnover greater than $3 million, and all private health service operators regardless of their turnover, face hefty fines for failing to comply with the new laws which have tightened regulations on the collection, storage and handling of personal information.

Harsher penalties for breaches will now see individuals facing fines of up to $340,000 and corporations facing fines of up to $1.7 million.

With personal details such as names, addresses, health and financial information being stored and transported via traditional and electronic means, the risk of loss and accidental or malicious distribution of information is immense.  There is now a greater onus on businesses to protect the information they collect for their own use and the sharing of information within Australia and overseas.

Implementing a set of strict guidelines to ensure your business adheres with the changes to the Privacy Act, and developing a new, compliant Privacy Policy should be at the top of every business owner’s agenda.

  • If applicable to your business, you should familiarise yourself and your employees with the changes to the Act and how they impact on the handling of customer information.  Although not an exhaustive list, here are some tips for implementing the new laws:
  •  Have a clear understanding of the information you require and how it will be used, stored, shared and disposed of.
  • Advise customers how their information will be used and if applicable, with whom it will be shared.  Ensure there is a clear understanding and that you address any customer concerns.
  • Give customers the option of not identifying themselves or of using a pseudonym.
  • Identify risks associated with the storage of customer information and implement effective security strategies to protect both hard copies and electronically stored data.
  • Avoid using customer information for unsolicited marketing.  Ensure you understand how, when and what type of information can be used for direct marketing and that there is a clear opt-out clause available to the customer.
  • Implement procedures for identifying and reporting any breaches or suspected breaches.

Ensure your policies are reviewed regularly to maintain compliance.

For more information about the Privacy Act and how it affects you, visit the Office of the Australian Information Commissioner.

 

 

 

 

/0 Comments/by

Budget Saver Tips for Insurance Premiums

It’s important to pay your insurance premiums by the due date to ensure the continuity of your cover.

Here are some tips to help minimise the impact this important outlay has on your family budget:

  • Review you insurance policies – you may find that you’re insured for something you no longer require, such as a car which has been sold or a product your business no longer manufactures.
  • Check the finer details – Have you installed a security system at your home or business?  Have you recently paid out a finance arrangement on your car?  Small changes to your circumstances can have a big impact on your premiums.
  •  Change the date – if your insurance policy falls due at a time when finances are extra tight, such as right before Christmas or when property rates are due, ask your broker to extend your policy so that it falls due at a more convenient time.
  • Pay by instalments – most insurance policies can be paid by periodic instalments, reducing the need for a lump sum payment each year and easing the pressure on your cash flow.

Whether you’re looking for insurance on your business, home, motor vehicle or boat, Professional Insurance Brokers (Vic) Pty Ltd can find you the right policy at the right price.  Call us for a quote on 1300 PROFIN (1300 776 346) or alternatively, you can Live Chat with us online during business hours.

/0 Comments/by

Warning to Home Insurance policy-holders

Many victims of the recent bushfires in the Blue Mountains, NSW have found that the increased costs of rebuilding their homes under the new Australian standard are not covered by their home insurance policies and they cannot to afford to rebuild. The new standard was set into place in response to recommendations put forward by the 2009 Victorian Bushfires Royal Commission and applies to the construction of all buildings in bushfire prone areas. The AS 3959 specifies construction methods and materials suited to better protect your home during a bushfire and applies to new buildings and the renovation, repair and rebuilding of existing buildings. This new standard denotes a significant increase to building costs therefore it is essential that you review your building sum insured and ensure it reflects the true cost of rebuilding.

Don’t get caught short. Contact us on 1300 776 346 to discuss increasing your building sum insured.

/0 Comments/by

Banks to remind clients of their insurance obligations

In line with a recent change to the banking industry’s code of practice, banks are now required to remind mortgage holders of their insurance obligations on a yearly basis.

Although the majority of homeowners do have insurance, there is still a small percentage who remain uninsured, putting themselves – and their mortgagees – at significant financial risk.

Under the terms of home loan contracts, mortgage holders are required to hold adequate insurance cover on their property, however banks rarely follow up their clients’ adherence to this obligation after the initial year. The new banking code has now put the onus back onto the banks to prompt their clients to maintain adequate insurance cover.

Banks will also explain the risks of underinsurance, in an attempt to reduce its disastrous effects, highlighted by the spate of natural disasters in recent years.

/0 Comments/by

Fire Levy Savings for Some Investors

Changes to the calculation of Fire Services Levy in Victoria will see more than 60,000 property owners save an average of $260 per year.

In an effort to create a fairer collection system, the Fire Services Levy was removed from insurance policies and applied to rates issued by local councils in July 2013.

Under this new system, properties classified as commercial, industrial, primary production, public benefit or vacant property are charged at the higher commercial rate of Fire Services Levy.  However the decision to charge the commercial rate on residential investment flats and short term holiday accommodation has fuelled complaints about some unfair aspects of the new system, causing the Napthine government to change the law to ensure all residential properties are treated in the same way.

This win for consumers is expected to cost the government $15 million and will come into effect from July 2014.

Treasurer Michael O’Brien has said funding to the fire services agencies will not be affected by this change.

 

/0 Comments/by