Insurance giant Hollard fined $2m after claim delays leave house uninhabitable
The Federal Court of Australia has fined insurance giant Hollard $2 million for mishandling a home insurance claim. The insurer was found to have caused unnecessary delays and poor communication, leaving a couple's home uninhabitable for an extended period.
Why it matters
This case serves as a significant regulatory warning to insurance companies regarding their duty of good faith toward policyholders.
The Federal Court has ordered Hollard insurance to pay $2 million. ( Supplied )
Link copied Share Share article Insurance giant Hollard has been fined $2 million for taking so long to process a home insurance claim that a house in regional Victoria became uninhabitable.
The corporate watchdog ASIC sued Hollard in April last year, alleging the insurer "breached its duty of utmost good faith" in its handling of a claim made by a couple in October 2021, two days after a storm damaged their roof.
The Federal Court ordered Hollard to pay $2 million for failing to promptly assess the damage, delaying rectification work and for failing to properly protect the property from further damage.
It was also found to have taken too long to find temporary accommodation for the couple, failed to consider expert reports, and not clearly communicate with the couple throughout the claims process.
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