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Complaint to ASIC against landlord insurers unfairly pursuing tenants

August 2021

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CHOICE and WEstJustice have called for regulatory intervention to stop insurance companies unfairly pursuing people who rent for claims made on landlord insurance.

The advocacy groups have presented finance regulator ASIC with evidence of insurers pursuing debts from people who rent after a claim is made on landlord insurance, with little or no evidence that the renter is responsible for any damage.

The cases the groups presented to ASIC include:

  • GIO insurance demanding payment of over $300,000 for fire damage without proving that the person who rented was responsible. The person and their family were not home at the time of the fire. The demand for payment was sent two-and-a-half years after the fire.
  • Chubb insurance pursuing a person who rents for over $3600 after a lock failure saw her trapped on the balcony of her high rise apartment. The damage occurred after the property manager told her to call the fire brigade for rescue due to the faulty lock. State rental law is clear that owners are responsible for maintenance of locks.
  • QBE pursuing a person who rents for more than $183,000 for fire damage, presenting no evidence of liability.

CHOICE and WEstjustice have asked ASIC to investigate industry practices across landlord insurance and to assess where insurers have misled people or breached licensee obligations to act efficiently, honestly and fairly.

Download complaint (PDF)

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