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One Nation Upper House Senator Brian Burston has gone into bat for Telegraph Point’s Luke Quintano.
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In a speech on Wednesday November 15, Senator Burston called for a Royal Commission into the insurance industry, after revealing details of Luke’s case.
The senator said the insurance industry is long overdue for a shake-up.
Luke was involved in a motor vehicle accident in 1999. Three years later he was shot outside a nightclub and suffered further injuries.
There has been no resolution to his insurance claims, according to Senator Burston.
“In a submission to the Senate Economics References Committee of inquiry into Australia's general insurance industry earlier this year, the Insurance Council of Australia made 31 references to claims, but not one – not one – was about the claims process, the transparency of the claims process or the manner in which they dealt with customers during the claims process,” Senator Burston is quoted in Hansard.
“They only spoke of how much claims cost them and not much else. I guess the term 'customer focus' hasn't made its way into the insurance industry just yet.
“In a KPMG report, the word 'claim' is only mentioned once as a topic of how much money was made because of fewer claims.”
Senator Burston pointed to one insurer, Allianz, saying they ‘seem to be all about profit and less about paying out claims or managing the customer relationship’. Luke is seeking compensation through Allianz.
“The Insurance Council of Australia takes no responsibility for the foreign companies' actions,” the senator said.
If there are brokers selling products that are not legal or compliant, the Insurance Council should take it out of the broker's hide after they've settled the claim with the consumer.
- Senator Brian Burston
“Similarly, the broker who sold the policy to the nightclub (where Luke was shot) takes no responsibility for the foreign companies' actions, nor for their own actions when they were notified that the insurance provider was not registered to operate in Australia.
“They should, at least, have sold a policy from a registered insurer to a nightclub or accepted the liability for Luke's claim.
“Aren't the brokers insured? If not, why not? Failing that, the Insurance Council of Australia should have accepted responsibility, as the industry peak body, sorted out the problem with the consumer and dealt with the member companies later.
“If there are brokers selling products that are not legal or compliant, the Insurance Council should take it out of the broker's hide after they've settled the claim with the consumer.”
Senator Burston called for the inclusion of the insurance industry in the terms of reference for any banking industry royal commission.
“The insurance industry in this country is long overdue for a shake-up and we are just the people to make sure it happens.
“I suggest that the Insurance Council of Australia and its member companies lift their game and make contact with Luke Quintano's father to resolve what is obviously an unresolved matter. It doesn't matter what has gone on before. The problem needs to be fixed and fixed now.
“This young man has suffered enough and for too long. If he were your son, what would you want to happen? The royal commission into banking is not that far away.”