Professional Indemnity Insurance Online :: News
SHARE

Share this news item!

ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues

ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues

ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Federal Court against Hollard Insurance, alleging a breach of the duty of utmost good faith.
This action is in response to what ASIC describes as Hollard's "egregious" handling of a home and contents insurance claim filed by a couple from regional Victoria.

ASIC's case against Hollard revolves around the insurer's handling of the couple's claim following storm damage to their property in October 2021. The regulator claims Hollard's excessive delays and failure to conduct essential make-safe work have rendered the couple's home uninhabitable, leading to extensive moisture, mould, and decay issues that necessitate demolition and rebuilding.

Sarah Court, ASIC's deputy chair, highlighted the seriousness of the delays, stating that such prolonged inaction is unacceptable and potentially unlawful. The legal action aims to address growing concerns about increasing general insurance complaints and send a strong message about the unacceptability of such delays.

The claim, initially filed in October 2021, took Hollard nearly three and a half years to resolve. The insurer rejected the claim in April 2023, 18 months after its submission. Following this, the couple sought intervention from the Australian Financial Complaints Authority, which directed Hollard to provide compensation for non-financial losses and substantiated the storm as the proximate cause of the damage.

Hollard eventually consented to a cash settlement exceeding $1.5 million. However, ASIC contends that despite initially accepting the claim, Hollard delayed decisions regarding repairs, took over nine months to arrange a structural engineer inspection, and postponed the provision of temporary accommodation.

Responding to the legal action, a Hollard spokesperson acknowledged the proceedings and expressed support for ASIC's efforts in fostering consumer-positive outcomes. They noted Hollard's cooperation with ASIC but refrained from further commenting due to the ongoing nature of the legal matter.

Published:Monday, 14th Apr 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

Sign in with Google to rate

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

The Rise of Autonomous Machinery in Australian Agriculture
The Rise of Autonomous Machinery in Australian Agriculture
21 May 2026: Paige Estritori
In recent years, Australian agriculture has witnessed a notable shift towards the adoption of autonomous machinery. This trend reflects a broader global movement aimed at enhancing efficiency and productivity in farming operations. However, despite the growing interest, several challenges continue to impede widespread implementation across the sector. - read more
Analyzing the 2026-27 Federal Budget's Impact on Agriculture
Analyzing the 2026-27 Federal Budget's Impact on Agriculture
21 May 2026: Paige Estritori
The recently announced 2026-27 Federal Budget has introduced several measures with significant implications for the Australian agricultural sector. These initiatives aim to bolster the industry's resilience and address pressing challenges faced by farmers nationwide. - read more
Navigating the Australia-EU Free Trade Agreement in Agriculture
Navigating the Australia-EU Free Trade Agreement in Agriculture
21 May 2026: Paige Estritori
The recently signed Australia-European Union Free Trade Agreement (FTA) marks a significant milestone in bilateral relations, concluding eight years of negotiations. This agreement holds particular relevance for Australia's agricultural sector, offering both opportunities and challenges across various commodities. - read more
HESTA Announces Significant Insurance Fee Reductions and Enhanced Member Protections
HESTA Announces Significant Insurance Fee Reductions and Enhanced Member Protections
21 May 2026: Paige Estritori
HESTA, a leading superannuation fund for health and community services professionals, has unveiled a series of significant changes aimed at making insurance coverage more accessible and affordable for its members. Effective from 1 July 2026, these changes include an average 12% reduction in insurance fees across all cover types, alongside enhanced protections during pregnancy and streamlined application processes. - read more
Suncorp Utilises Artificial Intelligence to Improve Insurance Affordability
Suncorp Utilises Artificial Intelligence to Improve Insurance Affordability
21 May 2026: Paige Estritori
In response to the growing concern over insurance affordability, Suncorp is making strategic investments in artificial intelligence (AI) and a new policy platform to develop more cost-effective insurance products. This initiative aims to cater to consumers who have been priced out of obtaining insurance due to escalating premiums. - read more
Click for more Insurance News


Professional Indemnity Insurance Articles

Common Misconceptions About Professional Indemnity Insurance Debunked
Common Misconceptions About Professional Indemnity Insurance Debunked
Professional indemnity insurance is a type of coverage specifically designed to protect consultants and business professionals from legal claims and financial losses due to errors or omissions in their services. It provides peace of mind for those who offer expert advice or services to clients. - read more
How to Tailor Your Professional Indemnity Insurance for Better Liability Coverage
How to Tailor Your Professional Indemnity Insurance for Better Liability Coverage
Professional indemnity insurance is designed to protect professionals from legal claims made against them due to mistakes or negligence in their work. It acts as a safeguard, covering legal costs and any damages awarded, ensuring that professionals can continue their practice without financial burden. - read more
Top 5 Reasons Australian Professionals Need Tailored Indemnity Insurance
Top 5 Reasons Australian Professionals Need Tailored Indemnity Insurance
In the fast-paced and dynamic landscape of today’s professional world, indemnity insurance has become a cornerstone of financial security for many Australian professionals. This type of insurance provides protection against claims of negligence or breach of duty made by clients or third parties. Without this safeguard, professionals may face substantial legal fees and damages that can significantly impact their financial stability. - read more
Understanding Risk Management: A Guide for Australian Professionals
Understanding Risk Management: A Guide for Australian Professionals
Risk management is a crucial concept that involves identifying, assessing, and prioritizing risks with the aim of minimizing their impact. For professionals, understanding and effectively managing risks can make the difference between stagnant growth and thriving success. But why is it particularly significant for those in Australia? - read more
Why Professional Indemnity Insurance is Vital for Protecting Your Reputation as a Consultant
Why Professional Indemnity Insurance is Vital for Protecting Your Reputation as a Consultant
As a consultant, safeguarding your professional reputation is crucial. One effective way to do this is through Professional Indemnity Insurance. But what exactly is it? In simple terms, professional indemnity insurance is designed to protect professionals against claims made by clients for professional negligence or breach of duty. It acts as a safety net, covering legal costs and any damages awarded, if a client alleges that you've made a mistake or left them shortchanged by your services. - read more

Knowledgebase
Elimination Period:
The time period between an injury and the receipt of benefit payments from an insurer, particularly in disability insurance.

Quick Links: | Professional Indemnity Insurance | Professional Indemnity Insurance Australia | PI Insurance For Consultants | Professional Indemnity Cover | Indemnity Insurance Cost | PI Insurance Online Quote | Professional Liability Insurance | Errors And Omissions Insurance | Professional Indemnity Policy Comparison | Indemnity Insurance For Accountants | Professional Indemnity Insurance Application
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. 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 validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.