[Resolved] Should I Pay Back The Insurance Excess?

Hi Peps

I am in a unique situation and need your advice.

I had a bingle in Nov'18 and logged a insurance claim and work was completed on the car. In April this year the insurance company send me email saying the there is no progress on the claim and would like refund the excess.

I gleefully accepted the refund. Yesterday insurance company called be back that they were informed by repairer that the work was compelted and asking me to pay back the excess, so they can pay the repairer.

Is there a legal obligation for me to pay back the excess? Forget the moral part for now…

closed Comments

  • +15 votes

    Do you want your car back?

    Edit: wait, the work was already done then months later they refunded the excess? That's fraud son. You knew it was their error and did nothing to correct it.

  • +2 votes

    yes.

  •  

    There is a moral one tho.

  • +5 votes

    Do you want to give your insurance (any possibly any other insurance in the future) a reason to not cover you next time you're in an accident?

  • +1 vote

    You want us to tell you it's okay to keep it?
    Give it back son

  •  

    So you're asking this forum if it's okay to steal?

  •  

    Insurers regularly use debt collectors to chase up people that owe them money. I don't know why you would contemplate not returning it.

  • +1 vote

    With the amount of clout insurance companies have with chasing people over debts, you want to keep your excess you are not entitled to, even though you knew the work had been finished? Good luck keeping that. Cant wait for your next post about how you are being hounded by an insurance company.

  • +1 vote

    I'd give it back but I wouldn't be hurrying to do so. Wait for a call. It could take months.

  • +2 votes

    Depends if you are relocating overseas and never plan on coming back to Australia or not.

  •  

    You clearly knew that money is not yours but you still accept it? Good luck with that.
    https://www.abc.net.au/news/2016-05-05/woman-arrested-at-syd...

    •  

      I have a feeling the OP's excess was a tad lower than 4.6 million. If I'm wrong…then I recommend buying a yacht and leaving via sea.

  •  

    Insurers have pretty good debt recovery processes in place. It wont go away by ignoring it.

  • +1 vote

    Is there a legal obligation for me to pay back the excess?

    Yes.

  •  

    The insurance company was honest and provided you with updates and a refund for your excess.

    So, as of now, you have not paid your excess.

    Legally, you have to pay the excess when the work is completed.

    Morally… not even sure there's an argument here.

  • +1 vote

    nah you'll be rite mate

    snacking on popcorn

  •  

    The fact that you accepted the payment (having known the work has been completed) is fraudulent.

  •  

    Is there a legal obligation for me to pay back the excess

    Yes.

  • +2 votes

    "Forget the moral part for now"
    Guess we need to forget the "moral part" as clearly the need to pose your question shows you have none.

  •  

    Don't worry about paying them for a service they rendered, they won't chase you up for it and there will be no repercussions at all.

  •  

    Is there a legal obligation for me to pay back the excess?

    Yes.

    You will be harangued into your grave for this money.

  •  

    Lol

    So many moral people on ozbargain. Probably the same moral people that jump on price errors

  • OP has their answer, comments are closed.

  • Top