AFCA Overrules Insurer in Camper Trailer Damage Case

2

Initially, the camper owner noticed no damage during usage in early November 2023, only to uncover water damage in April the following year. The insurer, RAA Insurance, asserted that the seals of the camper had deteriorated over time, thereby excluding it from coverage under clauses related to "depreciation, wear and tear, rust, corrosion," as well as "deteriorated seals and joints over a number of incidents."

The AFCA reviewed evidence from the insurer's assessor, which included images showing gaps in the seals where they did not align perfectly with the camper body. Despite these submissions, the authority found that the images and other evidence failed to incontrovertibly establish the alleged deterioration. They identified a lack of definitive indicators, such as holes or cracking, that would typically signal such decline.

In the ruling, an AFCA ombudsman remarked that, while deterioration is indeed a gradual process, the insurer did not provide persuasive evidence establishing that deterioration was the primary cause of the damage. The decision placed the burden of proof on the insurer, requiring clear information detailing the condition of the seals and how it led to the damage.

Consequently, AFCA mandated the insurer to approve the claim and arrange for repairs. Should they opt for a cash settlement, a 15% increase over the repair quotation must be paid. This decision underscores the obligation of insurers to substantiate exclusions in policy claims with compelling evidence.

Published:Monday, 9th Jun 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

Red Sea Unrest: Insurer Denies Cruise Cancellation Claim 20 Jun 2025: Paige Estritori An Australian travel policyholder has been denied a claim payout after his planned cruise in the Red Sea was cancelled due to conflict. The insurer, Southern Cross, invoked its policy's war and violence exclusion clause, as disturbances in the region were linked to military activities, rendering the claim invalid. - read more

Recognition at ACT Insurance Awards Highlights Industry Leaders 18 Jun 2025: Paige Estritori The ACT Insurance Awards have recently acknowledged the standout performers within the insurance sector, with EML Group's Canberra branch receiving the prestigious title of Insurance Leader of the Year. This accolade sets a benchmark in the industry, emphasising excellence and leadership among its professionals. - read more

TAL Collaborates with Insurtech to Launch Embedded Life Insurance 17 Jun 2025: Paige Estritori Australia's prominent life insurer, TAL, has partnered with the global insurtech firm, Cover Genius, to introduce an innovative 'digital-only', embedded life insurance product. This new solution aims to serve Australian workers such as part-time employees, contractors, and casual staff who often lack access to affordable insurance coverage. - read more

Growing Mistrust in New Zealand Insurers Amid Rising Costs 17 Jun 2025: Paige Estritori Recent findings from a Consumer NZ survey highlight increasing skepticism towards insurers in New Zealand, as affordability remains a significant concern for many. The survey noted that insurance now ranks as the fourth-largest financial pressure among respondents, trailing housing, food, and household debt, marking an upward shift from sixth place last October. This change has negatively impacted the industry's reputation, with more individuals expressing distrust towards insurers. - read more

No Refund Policy Upheld in Camper Tent Dispute 16 Jun 2025: Paige Estritori The Australian Financial Complaints Authority (AFCA) has supported Open Insurance's decision to deny a refund to a customer who cancelled his motor policy after being informed that his new rooftop tent installation would breach policy guidelines. The policyholder was advised that any modifications, including a 'slip on camper/tent or camper conversion,' would void coverage, prompting him to cancel his insurance in March. - read more