Consumer Rights
Under the legislation governing the conduct of insurance brokers, they are required to act in your interests. The broker acts on behalf of the insurance buyer, not an insurance company. In circumstances where they may be acting on behalf of the insurer, the broker must inform you of that fact.
Because insurance involves substantial sums of money, as with other professional and financial services, there are other measures in place to ensure consumers are protected.
Membership of NIBA is one assurance that your broker is committed to quality and service. Senior staff members of any brokerage must be Qualified Practising Insurance Brokers (QPIBs) and undertake continuing professional development.
All brokers must adhere to the Financial Services Reform Act, the Corporations Act and the Insurance Brokers Code of Practice. They must also abide by the decisions of Insurance Brokers Disputes Ltd, which resolves problems between consumers and brokers.
If you have an complaint regarding an insurance broker, you can email the Insurance Brokers Disputes Limited or call its consumer relations manager on 1300 780 808 or visit www.ibdltd.com.au. For more information on how to lodge a complaint click here.
Insurance Brokers Disputes Limited (IBD)
This is a free consumer service designed to handle complaints and help resolve problems between insurance brokers and other financial service providers (other than insurance companies) and their clients. IBD provides support to help you resolve problems quickly and efficiently, without having to resort to costly litigation.
IBD is overseen by a board of directors to ensure your interests are represented. The IBD Board consists of an independent Chairman, Richard Smith, formerly the Chief Manager for general insurance with the Australian Prudential Regulation Authority and Deputy Commissioner at the Insurance and Superannuation Commission. The other board members consist of two industry representatives, NIBA Chief Executive Noel Pettersen and industry representative and former NIBA broker Bob Elder; as well as two consumer representatives, financial counsellor Peter Gartlan and consumer lobbyist Jenni Mack.
IBD Ltd covers policies including:
- sickness and accident
- life
- travel
- motor vehicle
- home buildings and contents
- consumer credit
- personal and domestic property
- small business policies
Please note, complaints against insurance companies are handled by the Insurance Ombudsman Service – call 1300 78 08 08 or visit www.insuranceombudsman.com.au