Case Studies

The following case summaries highlight common issues and consumer tips. Cases can be filtered by subject below and names have been changed to protect confidentiality. Access to the full case study database is available for IFSO Scheme Participants in the Participant Area.

Steak cooked in a toaster sparks disaster image
The unusual preparation of a meal caused a catastrophe in which a couple lost their home.
Mr H* had a craving for steak and chips. For reasons unknown, he decided to cook his steak in a toaster.
House and Contents Insurance House Fire Sum Insured
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Responsible lending disputed image
Beneficiary caring for three grandchildren given loan she couldn't repay
Mrs Clayton* was given a loan despite having three bank balances of $0 and making regular payments t...
Lending Loans & Credit
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Increasing premiums image
Lucy and Michael* said they were misled when their life insurance premiums increased nearly three-fold.
The couple complained to the IFSO Scheme that "rate for age" was never explained and they were told ...
Premiums Life Insurance
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Impact of COVID-19 and redundancy image
Mrs Hall* had payment protection insurance and made a claim to the insurer when her employer terminated her employment due to COVID-19.
She complained to the IFSO Scheme, saying her termination was due to the impact of COVID-19
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Complaint insurer misunderstood the term “off-roading” image
A man complained his insurer had an incorrect understanding of the term “off-roading”.
He told the IFSO Scheme his claim was declined after his 4-wheel drive stopped in the middle of a river.
Vehicle Insurance
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Gradual damage? image
A couple were dismayed when their insurer declined their claim on the basis that the damage was gradual and not covered by the policy’s gradual damage extension.
Mr and Mrs Forest* discovered their dryer had been leaking, causing damage to the surrounding walls ...
gradual damage gradual damage extension House and Contents Insurance
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Premiums paid were more than the funeral cover was worth image
Consumers need to understand that, sometimes, they will pay more in premiums for funeral cover than the cover is worth
Mrs Parata* arranged funeral insurance cover for her husband, for a sum of $20,000.
Premiums Life Insurance Funeral Insurance
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Methamphetamine contamination confusion image
Confusion over methamphetamine contamination standards can have severe consequences for some landlords.
Through a financial adviser, Mr and Mrs Singh* held insurance on a rental property. In June 2020, Mr...
contamination House and Contents Insurance House landlord methamphetamine
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Tenant turns house into animal refuge image
Regular property inspections can reveal issues before they turn into big problems.
The IFSO, Karen Stevens, warns landlords to ensure tenants abide by the conditions of the rental. In...
landlord tenant pets House and Contents Insurance houseandcontents
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Request to reduce life cover image
Insurers and financial advisers must act with reasonable care and skill.
Shortly before he died, Sam asked his financial adviser to reduce his life insurance cover from $268,000 to $100,000.
Life Insurance Financial Advisers
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No home, 4 loans, responsible lending? image
Lender responsibilities aim to protect consumers against substantial hardship.
Ann's house was demolished and she told her lender she couldn't repay her 4 loans. She later received a repossession notice.
Loans & Credit
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Stress after the storm image
Independent evidence can help to progress insurance claims.
After a claim for flooding and storm damage was accepted, issues and delays continued for a stressful year.
House and Contents Insurance
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