Taxi Driver Wins Case Against Late Reporting Excess on Crash Claim

A recent ruling by the Australian Financial Complaints Authority (AFCA) has overturned a $2500 late reporting excess fee applied to a taxi driver's insurance claim.

The charge was initially levied after he lodged a claim late following a December 2023 accident for which he was at fault, resulting in minor damage to his vehicle.

The case arose when the driver, in May of the following year, received a demand from the insurer of the other vehicle involved, prompting him to file a claim with Taxi Care Club, a mutual fund for professional drivers. While the claim was accepted, he faced a $1500 universal excess along with a $2500 late reporting excess, reduced from the initial $5000.

AFCA concluded that the policy terms regarding the discretionary excess were not absolute and should be applied only if the delay had prejudiced the insurer's ability to manage the claim. The Taxi Care Club had contended that the delay hindered its ability to inspect the other vehicle for pre- and post-repair checks, and that continued use of the taxi might have led to further damage.

However, AFCA's investigation found no evidence suggesting that repair costs were inflated or could have been mitigated with timely inspections. The ombudsman emphasised that the outcome exercised must be fair and in line with members' expectations, noting that no additional damage resulted from the delayed report or the driver's continued use of the vehicle.

For consumers, this ruling underscores the importance of understanding contract terms related to discretionary charges, as well as their potential relief under equitable considerations. For mutual funds and insurers, it emphasises the necessity for transparent communication of terms and the fair application of fees.

Looking ahead, this decision may influence how insurance providers and mutual funds structure their policies regarding late reporting fees, potentially adopting a more consumer-centric approach when discretion is involved. Industry experts predict this will lead to heightened scrutiny and potentially more favourable outcomes for claimants in similar situations.

Published:Monday, 20th Oct 2025
Source: Paige Estritori

Share this news item:

Insurance News

Taxi Driver Wins Case Against Late Reporting Excess on Crash Claim

20 Oct 2025: Paige Estritori

A recent ruling by the Australian Financial Complaints Authority (AFCA) has overturned a $2500 late reporting excess fee applied to a taxi driver's insurance claim. The charge was initially levied after he lodged a claim late following a December 2023 accident for which he was at fault, resulting in minor damage to his vehicle. - read more

Celebrating Excellence: 2025 National Trucking Industry Award Winners

20 Oct 2025: Paige Estritori

The Australian Trucking Association (ATA) has proudly announced the recipients of the 2025 National Trucking Industry Awards, recognising individuals and organisations that have demonstrated exceptional dedication and innovation within the trucking sector. These awards highlight the vital contributions made to the industry and the broader Australian economy. - read more

Addressing the Surge in Collision Risks Among Australian Fleet Operators

20 Oct 2025: Paige Estritori

Australia's transport and haulage sector is currently navigating a period marked by an uptick in motor collision claims, posing significant challenges for fleet operators nationwide. This trend underscores the necessity for enhanced risk management and insurance strategies to safeguard operations and maintain profitability. - read more

Inattention and Speed: Primary Factors in Australian Truck Crashes

20 Oct 2025: Paige Estritori

The National Truck Accident Research Centre (NTARC) has released its latest Major Incident Investigation Report, shedding light on the predominant causes of significant truck crashes across Australia. The findings underscore the critical need for targeted interventions to enhance road safety within the transport industry. - read more

ASIC Initiates Legal Proceedings Against RACQ Insurance for Misleading Premium Information

19 Oct 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against RACQ Insurance, a subsidiary of Insurance Australia Group (IAG), alleging that the insurer misled over 570,000 customers through deceptive premium comparison pricing in renewal notices issued between September 2019 and December 2024. - read more

Click for more Insurance News

Caravan Insurance Articles

Why You Should Use a Specialist Caravan Insurance Broker Instead of Going Direct

Caravan insurance is an important investment for anyone who owns a caravan. It provides financial protection against loss, damage, or theft of your caravan. While it's possible to purchase caravan insurance directly from an insurer, in this article, we explore why you should use a specialist caravan insurance broker instead of going direct - and how to choose the right one for your needs. - read more

Why Caravan Insurance is a Must for Australian Travelers

The caravan lifestyle is experiencing a remarkable surge in popularity across Australia. Recent years have seen a significant increase in the number of individuals and families embracing the nomadic way of life, traveling across the country in caravans. - read more

Essential Guide to Insuring Your Converted Van or Bus in Australia

Owning a converted van or bus is a dream for many adventurous Australians. It offers freedom, mobility, and the chance to explore the great outdoors with the comfort of home on wheels. However, with this unique lifestyle comes specific responsibilities, one of which is ensuring your beloved vehicle is adequately insured. - read more

5 Rookie Caravanning Mistakes and How to Insure Against Them

Caravanning in Australia taps into a deep-seated love for adventure and the great outdoors. With vast landscapes and awe-inspiring natural beauty, it's no wonder that hitting the road with a caravan in tow has become a cherished pastime for many Aussies. - read more

The Ultimate Guide to Comparing Caravan Insurance Quotes

Caravan insurance is designed to protect your financial interests when you own a caravan. Just like any vehicle or property insurance, it provides coverage for damage, theft, or accidents. Given the unpredictable nature of travel and the investment involved in a caravan, having the right insurance is crucial for peace of mind. - read more

Knowledgebase

Claim:
A formal request made by the policyholder to the insurance company for payment of a loss covered by the insurance policy.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.