Broker who misunderstood client must pay to cover claim

Dec 09, 2020 at 09:04 AM CST
Australian Broker Network was found to have breached its duty of care when it reduced the sum insured of a client’s business truck from $50,000 to $20,000 and must compensate the client who could not claim fully for the vehicle’s repair bill of $26,501.45. The 2004 Hino GH truck was damaged in October last year when the wrong oil was accidentally used, damaging its engine. The client only found out the sum insured had been reduced when they made a claim to recover the repair cost.

Dec 09, 2020 at 09:04 AM CST

Australian Broker Network was found to have breached its duty of care when it reduced the sum insured of a client’s business truck from $50,000 to $20,000 and must compensate the client who could not claim fully for the vehicle’s repair bill of $26,501.45. The 2004 Hino GH truck was damaged in October last year when the wrong oil was accidentally used, damaging its engine. The client only found out the sum insured had been reduced when they made a claim to recover the repair cost.