Insurance Claim question for workplace (sub contractor)

Ltoomuch on 18/05/2017 - 15:19

Here is one for the community.

My flatmate is a sub contractor to a contractor.
He is a delivery driver and all expenses re covered eg:- Fuel/Tools/work cover/liability/maintenance of vehicle/rego and insurances.

No agreement/contract exists between both parties. No verbal discussions were held regarding insurance claims.

He was driving in the city 2 months ago and his vehicle wing mirror clipped a buses wing mirror down a one way street.

The owner of the business in now asking my flatmate to cough up with $1000 to pay the excess.

Where would 1 stand on this as when you are employed normally the employer would cover the excess.

Thanks in advance

Education & Work

Comments

  • pjetson on 18/05/2017 - 15:36
    +2

    The owner of the vehicle is ultimately responsible, but if your flatmate doesn't pay, I assume he won't have a job any more. Tough choice.

    • toomuch on 18/05/2017 - 15:43

      Well with that he already has a full time job that he starts in two weeks time as the sub contracting worked out to be $15 a hour.

      • whooah1979 on 18/05/2017 - 16:09
        +2

        Well with that he already has a full time job that he starts in two weeks time as the sub contracting worked out to be $15 a hour.

        hmm. $15 p/hr sounds doggy. this sounds like sham contracting. which contractor is your mate's employer?

        • toomuch on 18/05/2017 - 16:26

          well its based on a % of the days sales , you work faster to get good money , but you wont get paid for delays etc

    • [Deactivated] on 18/05/2017 - 16:52

      Tough choice.

      Seems like a pretty easy choice, once you crunch the numbers and know that there's another job waiting for around the corner.

  • chumlee on 18/05/2017 - 15:42

    Normally the details are covered off in a workplace contract so as none exists i guess your flatmate should pay as he was driving the vehicle.

    • toomuch on 18/05/2017 - 15:47

      thanks for the reply , its a tough one as no contract exists. It will come down to a mutual agreement i hope

  • whooah1979 on 18/05/2017 - 16:06

    My flatmate is a sub contractor to a contractor.

    does your mate work for a startrack contractor as a sham contractor?

    • toomuch on 18/05/2017 - 16:26
      +1

      no … same same but different

  • dasher86 on 18/05/2017 - 16:50

    The determination of this actually changes per state.
    I'm assuming you're in Brisbane?
    Well unfortunately the subcontractor is liable unless of course you can actually prove that your flat mate should have been classed as an employee.
    https://www.ato.gov.au/business/employee-or-contractor/how-t…
    However $1000 is a little high. I would negotiate to pay half…

    • toomuch on 18/05/2017 - 17:16

      Yes this happened in Brisbane .
      it is $1000 as he has transferred here nz to qld licence in the last 2 years.

      That will be the plan is offering $500 upon invoice to flatmate and not off his wages

      • [Deactivated] on 18/05/2017 - 17:38

        it is $1000 as he has transferred here nz to qld licence in the last 2 years.

        How is converting the nz to qld license affecting the excess? You might want to check how they're calculating the excess … I'm pretty sure the NZ driving experience should count the same an Australian driving experience.

        • toomuch on 18/05/2017 - 19:04

          the insurance states that if you have held a Australian licence less than 2 years he excess is $1000.

  • [Deactivated] on 18/05/2017 - 16:57

    He was driving in the city 2 months ago and his vehicle wing mirror clipped a buses wing mirror down a one way street.

    Who was at fault or is the other driver unidentified?

    The owner of the business in now asking my flatmate to cough up with $1000 to pay the excess.

    How much damage are we talking about? Just 1 car mirror or car mirror + bus mirror or more?

    If it's just a car mirror, go buy a mirror from a wrecker and move on.

    • toomuch on 18/05/2017 - 17:14

      I have been told the bus mirror was quoted at $2660 to repair.

      He said that only the mirror was cracked and not the whole arm etc .

      He has only seen the insurance quote from the owners insurance that the excess is $1000 to cover the damage.

      He has held a qld drivers licence for under 2 years so puts his excess up to $1000

  • whooah1979 on 18/05/2017 - 17:50

    He is a delivery driver and all expenses re covered eg:- Fuel/Tools/work cover/liability/maintenance of vehicle/rego and insurances.

    could you please confirm that your mate is the owner of the vehicle (not just the registered operator) and are paying all the expenses relating to the operation of the vehicle.

    edit
    does your mate issue invoices to his boss?

    • toomuch on 18/05/2017 - 19:09

      The flatmate does not own the vehicle , he works as a sub contractor that contracts from a company .

      He sends a invoice weekly for the work he has done.
      All expenses are covered by the owner of the vehicle . fuel etc

  • BensonP on 18/05/2017 - 18:11

    Wow your mates boss is a real douche.

    It's his vehicle. It's his insurance policy. It's his excess. If he doesn't like it, he shouldn't offer company cars.

    I work for a large company and we have people crashing cars and reversing into stuff all the time. It goes with the territory. You offer company vehicles, you should expect accidents, and thus, expect to pay excesses.

    Edit: Do'h! Does the vehicle belong to the boss? If it belongs to your friend, he'll have to pay.

    • toomuch on 18/05/2017 - 19:10

      you were right the first time , it belongs to his boss

  • hell0 on 18/05/2017 - 21:23

    lol! The bus driver wants $1000 for the excess? I hope you know once the claim is made by the other driver the insurance company will come after your friend for the cost of the repair so why the hell is he paying the excess… Let the other put through the claim as otherwise you will be out another 1k.

    • [Deactivated] on 19/05/2017 - 17:00

      The bus driver doesn't want the $1000. It's an insurance excess on the van policy because he hasn't had a licence for long.

  • farknos on 19/05/2017 - 10:13
    +3

    the owner of the truck will be responsible,
    it may be in the links provided above (i haven't looked at them) the tax department views someone who derives all of there income from one source as an employee. They changed this years ago so that dodgy operators couldn't sherk the responsibility as an employer and so wage earners couldnt claim all the lurks and perks of a subbie. That being said $15 an hour isn't a lerk. If your mate was to make some inquiries along this line and then speak to his previous employer (owner of the truck) it may go away on its own. the owner of the truck is also due to pay super along with all the costs associated with the truck.
    (Note: i dont work for the tax department but my dad does, although he is in a lot of trouble at the moment for helping me a bit.)

    • [Deactivated] on 19/05/2017 - 17:01

      Ha Ha.
      I wonder how many people get this?

    • toomuch on 20/05/2017 - 21:45

      Farknos… you my man are a legend !
      this has opened a big can of worms.

      Sham Contracting will out weigh the supposed $1000 he wants for a insurance claim

      I will do a update in the near future after he calls ATO and Fair work

      Thanks all !

  • farknos on 20/05/2017 - 10:33
    +1

    very few i would imagine

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