Asked to Pay Inexperience Driver Excess. Is This Case Justified?

Luniquemods on 10/02/2016 - 14:47
Last edited 10/02/2016 - 14:48

Asked to pay Inexperience driver excess. Is this case justified?

I have been driving in Australia from 2012 on a Overseas car license as i was on work permit. (Temp VISA later converted to PR)

In July 2015, I purchase a used car and became a customer of Allianz car insurance. This insurance was taken with my Overseas (recognized) driver license details. This Overseas license for light motor vehicle (car) is 8 yrs old.
Then in 1st week of Dec 2015, I got my full Australian driver license.

To my bad luck, I had a minor accident (minor rear ended) on 24th Dec, for which I have been informed I would have to pay an “Inexperience driver excess” of $500 + normal excess.

How does Allianz justify this request and consider me a new driver? My Australian license may be new but the insurance policy was bought on an Overseas license which is 8yr old.

Allianz already had my Overseas license details as proof that I am not a new inexperience driver while selling me the insurance policy. I am being charged $500 for a technicality?

I am happy to pay my normal excess, not this $500 unfair addition.
Therefore i have request Allianz on 9th Feb 2016 to waive the $500 “Inexperience driver excess” and resend the Excess Request email.

No reply yet.
I Hope my request justified as I am not sure. and if Allianz does not agree, what should my next steps be?

Kindly advice.
UM

Automotive

Comments

  • pyramid on 10/02/2016 - 14:52
    -4

    From the day you become resident, insurance company calculate experience from that date. So as soon as you become resident, your experience from overseas driving is not considered.

    • brazen00 on 10/02/2016 - 15:12
      +1

      Not according to Allianz's PDS.

      • bghunter on 12/02/2016 - 00:42

        Not according to any insurance company's PDS, according to my experience

  • grog on 10/02/2016 - 14:52
    +1

    Maybe read the fine print on the contract?

    They may require australian license for a few years?

    The fine print will have the info

    • uniquemods on 10/02/2016 - 14:55

      I had checked. Fine print does not state Australian license. Just "license".

  • brazen00 on 10/02/2016 - 14:55
    +8

    Seems unfair to me. From the Allianz PDS:

    You will need to pay the inexperienced driver excess shown
    on the policy schedule in addition to the basic excess payable
    if you make a claim for an accident when your vehicle was
    being driven by a driver over the age of 25 who had not held
    their current Australian or overseas driver’s licence for more
    than two consecutive years.

    Allianz could argue that you haven't held your current AU driver's licence for more than 2 years but that's being very slippery.

  • tomleonhart on 10/02/2016 - 15:06

    doesn't sound very fair to me.

  • uniquemods on 10/02/2016 - 15:18

    Any suggestion, if Allianz does not waive the $500 off?

    I am feeling cheated for that very reason.
    I understand, the excess is in place to reduce the liability of the insurance company, if the driver is a actual inexperience driver. i my case, they had the details and should not have even requested it.

    I have got caught in the technicality. But I am not sure if i can take this to Australian Consumer Law / court or is it not worth the hassle?

    Kindly advice. i have no clue about the Australian Consumer Law / court system.

    UM

    • Olokun on 10/02/2016 - 16:18
      +1

      I am pretty sure that your complaint is not covered by the ACL.

      You will need to lodge a complaint with the Financial Services Ombudsman after you have been through the Allianz Internal Dispute Resolution Process (IDR)

      As a signatory to the General Insurance Code of Practice we offer an Internal Dispute Resolution Process (IDR) in the event a customer is not satisfied with either the outcome of a General Insurance claim, or any aspect of its handling. To start the IDR process, call us and ask to speak to the Claims Team Leader.

      • uniquemods on 10/02/2016 - 16:22

        Thanks. That's really helpful.

        UM

  • skinner on 10/02/2016 - 15:46
    +1

    How about waiting for a response from Allianz before you get too bent out of shape about it (pun intended).

    • uniquemods on 10/02/2016 - 16:23

      Yup. I am going to wait for a few days for them to reply or call again.

  • Hellfire on 10/02/2016 - 16:10

    Raise a complaint with the Allianz internal dispute team (look for a Complaints email or phone number). This is handled separately from the normal claims team. If you still don't get the outcome you want then raise the issue with the Financial Ombudsman - www.fos.org.au

    • uniquemods on 10/02/2016 - 16:25

      OK. Thanks for the information. will update once i get a reply.

      UM

    • nafe on 10/02/2016 - 17:16

      There's no dispute yet, they haven't denied his request to waive the additional cost. He needs to wait for that to be done first.

      • Hellfire on 10/02/2016 - 17:18

        I Hope my request justified as I am not sure. and if Allianz does not agree, what should my next steps be?

        Those are the next steps if Allianz does not agree

        • nafe on 10/02/2016 - 17:19

          Apologies, I thought you were talking the first steps!

    • saty1296 on 11/02/2016 - 07:49

      I agree with Hellfire, if you really want to get to a resolution, access Allianz's Internal Dispute Resolution IDR and if not satisfied with their response, then contact Financial Ombudsman Service FOS. Going through Allianz's normal customer claims team will not make it any easy for you.

  • Vieira4 on 11/02/2016 - 09:52

    Welcome to Australia. The land of getting bent over and sodomised.

  • jackspratt on 11/02/2016 - 17:23
    +1

    Why were you driving for 3 years on an overseas license?

    Is that even legal?

    • whooah1979 on 12/02/2016 - 06:11

      Permanent Visa

      If you hold a permanent visa (issued under the Migration Act 1958) you may drive on your overseas driver licence if it's written in English or accompanied by an English translation or international driving permit for:

      6 months from the date you first entered Australia (if the permanent visa was issued before you entered Australia), or
      6 months from the date when the permanent visa was issued (if the permanent visa was issued to you while in Australia).
      https://www.vicroads.vic.gov.au/licences/renew-replace-or-up…

      op may have been driving uninsured between getting the pr and a vic driver licence.

    • uniquemods on 12/02/2016 - 12:14
      +1

      A person holding a work permit, which is a Temporary stay visa, can drive as long as the temp visa is valid.
      In my case 4 years.
      After becoming a Permanent resident, you can use the overseas license for only 6 months in VIC, and get a full Australian license in that period.

      https://www.vicroads.vic.gov.au/licences/renew-replace-or-up…
      Temporary Visa

      If you hold a temporary visa:

      you are not required to get a Victorian driver licence and/or learner permit
you can drive using your current overseas driver licence for the length of your stay
your driver licence must be written in English or accompanied by an English translation or international driving permit.
      • whooah1979 on 12/02/2016 - 18:02

        Like i said. A pr can only use their overseas licence for six month after a pr has been granted. Did op get their vic driver licence within the six months?

        • uniquemods on 15/02/2016 - 13:25

          yup

        • whooah1979 on 15/02/2016 - 17:09

          @uniquemods:

          it's good that you were covered at the time of the accident. however, brazen00 is right that your current oz licence is less than two year old. allianz is right in asking you to pay an inexperienced driver excess.

  • uniquemods on 19/02/2016 - 11:40

    Good new.

    Allianz waived off the $500 without any further fuss.

    Thanks guy for your assistance and advice.
    I am happy i didn't have to escalate this to Financial Ombudsman Service FOS, but its good to learn the options available.

    UM

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