Mr Hockey suggested some premiums may have been unrealistically low, making insurers vulnerable. A MAN whose stolen car claim was rejected after he locked his vehicle and put the alarm on but accidentally left a spare key in the glove box. A MAN who waited in vain for the return of his prized motorbike before learning the insurer had sold it without permission weeks earlier. Other firms have been caught covering up critical clauses in documents or not clearly explaining what customers must tell them, such as driving offences and past burglaries. Record numbers of complaints over car, home and contents, travel, accident and other general insurance policies were reported in the past year.
Insurers say reported gripes are growing because of greater public awareness of resolution schemes.
Almost 13,500 disgruntled Australians lodged disputes with general insurance companies last financial year - a rise of 12 per cent. Most were about rejected or reduced claims. Annual unresolved battles referred to the General Insurance Enquiries and Complaints Scheme have more than doubled to 2325 in the past five years. The industry-funded watchdog handles claims disputes over most insurance taken out by householders, except health and life insurance. Companies settled other disputes totalling millions more themselves.