Experience with Comprehensive Insurance Not Paying?

Dr Fruit on 23/01/2023 - 16:13
Last edited 23/01/2023 - 21:06 by 1 other user

Friend got into an accident where he’s at fault. Has comprehensive insurance from Budget Direct.

Not much damage to his vehicle but the other one had to get some work done (this is probably not even relevant tbh).

Excess has been paid in full. Was informed by Budget Direct that they did not agree with the cost to repair bill incurred by the other party (I assume they received the bill from the other party’s insurance company, and they thought it’s way too high for the type of damage), and that they’re in negotiations. It’s been like 3-4 months. Now friend has received mail in the letter of an intended legal action against him from the lawyer representing the other party’s insurance company, because apparently Budget Direct has not paid them.

Has called Budget Direct many many times but they continue to drag their feet.

Has anyone had experience with a similar situation? Is it safe to assume protection from legal action because this is really a problem for Budget Direct?

Thanks OzB keyboard lawyers :)

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Comments

  • Ryanek on 23/01/2023 - 16:17
    +7

    Perhaps contact AFCA

  • CrowReally on 23/01/2023 - 16:36
    +6

    They're being a PITA to the person to hassle them into hassling Budget Direct on their behalf. They can forward the letter to Budget Direct to deal with (whose responsibility it now is).

  • Switchblade88 on 23/01/2023 - 16:38
    +8

    Lawyer should be sending letter to insurer, not customer, but I can see why they'd be pushing - if I was the other party I'd be pissed for not being paid for 4 months!

    Having said that, the excessive bill is a classic insurance rort done by everyone since that's the way it goes.

    I'd lodge a complaint with Budget Direct (NOT just a claims query) and then contact AFCA, since they'll want to know you've already gone through the relevant channels first.

  • try2bhelpful on 23/01/2023 - 16:53
    +3

    I would contact Budget Direct and get them to deal with it. They will, now, have to deal with the costs for the lawyer as well.

  • AustriaBargain on 23/01/2023 - 16:59
    +6

    Refer their lawyer to your insurer and tell them that they should only communicate through your insurer's lawyers. And your insurer shouldn't even bother telling you what's going on because it's their issue, not yours. All of this should be happening behind the scenes unless your friend was doing something not covered by insurance, like drinking while driving which would invalidate the insurance.

  • bobbified on 23/01/2023 - 17:07
    +5

    The insurer (Budget Direct) indemnifies the insured (your "friend"). So any demands receive from the other party should be forwarded on to Budget Direct. Your "friend" shouldn't be responding to anything - let Budget do it. That's what they have a legal team for.

  • oscargamer on 23/01/2023 - 17:18
    +8

    Do NOT correspond with the other party or their legal rep.

    Refer everything, to BudgetDirect.

  • Drakesy on 23/01/2023 - 17:36
    +4

    Seems to be a common party across all these threads being Budget Direct and its uselessness.

    • mbck on 23/01/2023 - 18:31
      +2

      I'm with them and they've been great to me. Low cost, helped with any accidents(not at fault). Still have ratings one protection and choosing my own repairer (<800)

  • nwa on 23/01/2023 - 19:25
    +2

    This is normal practice, its the game they play, the dance they do, your caught in the middle. The other party are trying to shake down Budget, so Budget calls their bluff, they will resolve it last minute most likely or have to represent you in court, or pay your costs if it goes to that. The main thing is you have to tell them.

  • Dr Fruit on 20/02/2023 - 22:37

    Not sure if any of you remember this, but I'm writing to follow up on my previously posted issue: https://www.ozbargain.com.au/node/752809

    Called Budget Direct after the solicitor's threatening letter last time, they said they'll fix it. Now it's been a month ish later and today the sheriff literally showed up to my friend's house to seize his property (car). Called Budget Direct and after 5 hours of back and forth it's still inconclusive. Same old "we'll fix it" response.

    Just curious if anyone has had any similar experience. Should we just hire a solicitor and sue Budget Direct for this bs they're putting him through? Not to mention hours and hours on end of being held on phones and transferred between departments. Have also already made a complaint to AFCA.

    I'm sure this is a rare incident but it's unacceptable the stuff they're pulling. YMMV obviously but be warned about Budget Direct.

    • MS Paint on 20/02/2023 - 22:39
      -2

      Dupe?

    • Typical16-bitEnjoyer on 20/02/2023 - 22:45
      +3

      Did your "friend" get served with Court docs and ignore them? Yikes.

      Sheriffs don't just rock up for no reason.

      Get legal advice, like yesterday.

      • Dr Fruit on 20/02/2023 - 23:35

        No court docs. Only the letter as mentioned last time.

        Also, why would my friend be served court docs? This should 100% be between the insurers. Isn’t budget direct the ones that are supposed to go to bat? Otherwise wtf is the point of purchasing the comprehensive insurance policy and paying an excess?

        • AngoraFish on 21/02/2023 - 00:14
          +2

          If the sheriff is there they are implementing some sort of court order. The sheriff doen't just rock up, and they certainly don't seize anyone's property, just because an insurance company sends them an email. That would be theft.

          It's likely that there's some sort of default court order in play because your insurance company failed to respond to or be represented in a hearing.

          It's actually not at all 100% between the insurers. It's 100% between the two people involved in the accident. Insurance companies are just agents for those people (employees, essentially), and they don't always do their jobs very well. If the insurance company stuffs up it's ultimately you who are liable for that.

          So yeah, get legal advice. Now.

        • Typical16-bitEnjoyer on 21/02/2023 - 07:41
          +1

          Also, why would my friend be served court docs?

          It commonly happens when you owe money, lol.

          This isn't 100% between the insurers at all, it's 100% between you and the other driver and simultaneously 100% between you and your insurer who should be indemnifying you.

    • funnysht on 20/02/2023 - 22:48

      i had to claim with budget direct- they sorted it out no hassle - prob only 1-2k worht of damage

      and when i had to call them on another issue- they were quick..so not too sure why 5hrs..

      • Dr Fruit on 20/02/2023 - 23:38

        And I would expect no less from a major insurer. The claims department is pretty fast to pick up. But the moment I say it’s regarding dispute about an existing claim suddenly it’s “oh that’s something xxx department handles” or “let me transfer you to xxx please hold”.

        But yea, ymmv for sure.

    • djkelly69 on 20/02/2023 - 22:49

      I would send an email/letter to the other party's solicitor telling/reminding them that Budget Direct is your friend's insurer, that your friend expects to be fully indemnified by Budget for the accident, and that all correspondence should be sent to Budget in relation to the matter.

      Has your friend been ignoring notices from xCAT or a local court? Because AFAIK you need a judgement against someone from a court or tribunal before you can then seek enforcement through the Magistrates Court (sheriff seizing property, etc).

      • Dr Fruit on 20/02/2023 - 23:33

        Nothing in between last letter from NRMA (other party’s insurer)‘a lawyer and sheriff showing up this time.

        • bobbified on 20/02/2023 - 23:40

          Wait.. it was NRMA"s solicitor that took it to court??

          That doesn't make sense. If your "friend" had lodged a claim with his own insurer (Budget) and paid the excess, then he/she would've had a claim number. That claim number gets passed to NRMA and they would know to seek recovery of costs directly from Budget.

          So where did it go wrong?

          • Dr Fruit on 20/02/2023 - 23:43

            @bobbified: Yup. Was furious that they even sent a letter through. I assume it’s because Budget Direct refused to pay them the repair cost but even then they should no right to bug the claimant - or even have their address information and whatnot.

            • bobbified on 20/02/2023 - 23:46

              @Dr Fruit: That sounds really weird.

              Anyway, is your friend hot? She must be hot if you're that furious and willing to create two posts about it. 😋

              edit: oh wait, it's a HE….. ignore my question! haha

              • Dr Fruit on 20/02/2023 - 23:49

                @bobbified: Bold of you to assume their gender :P

                Naw. Some people are just too nice to be assertive so I've been yelling at Budget Direct on their behalf.

              • Dr Fruit on 20/02/2023 - 23:53
                +1

                @bobbified: Obviously people here all have the right to be skeptical… but it really is as f'd up as it sounds.

                • bobbified on 20/02/2023 - 23:55
                  +1

                  @Dr Fruit: I don't think it's that people don't want to believe. It's because there's a whole long process (and lots of steps) to go from when an accident occurs to when the sheriff actually rocks up at the door. And each step of the way, notification in writing is sent. So it's hard to believe not much was done at each step to avoid the outcome that has just occurred.

                  • Dr Fruit on 21/02/2023 - 00:06

                    @bobbified: For sure. But yea…. it really just went from that first letter from NRMA's solicitor to a month later today when the sheriff showed up.

                    If anything maybe we were just not assertive enough with Budget Direct during this whole process. Called after that letter was received last time and they just say they'll take care of it and thought that was the end of it. Apparently not.

    • pegaxs on 20/02/2023 - 23:06
      +6

      Bullshit. Sheriff doesn’t turn up until a court order has been made and you are “your friend” is found to be owing the debt. They can’t go straight to sheriff seizing your shit like that.

      So, either that part is bullshit, or there is something you’re “your friend” is not telling us…

      • Dr Fruit on 20/02/2023 - 23:32

        You can believe this or otherwise. The comprehensive insurance indemnified the policy holder. The policy premium is paid. The excess for said claim is paid. The other party’s insurer (NRMA)‘s lawyer sent a letter threatening property seizure if they’re not paid (by Budget Direct) for the repair to their clients car. Budget Direct proceeds to continue to refuse to pay them. Sheriff shows up asking to seize property. Simple as that, no caveats nothing hidden.

      • Dr Fruit on 20/02/2023 - 23:36

        Enlighten me about what debt can be owing.

      • Dr Fruit on 20/02/2023 - 23:41
        +2

        It is literally as incredulous as it sounds. Own a car outright. Buy a comprehensive policy. Get into an accident with another vehicle and pay excess. That should be the end of it.

        There’s no reason why anything should’ve ever been served to my friend. And no reason for their lawyer to be mailing him. Or for the sheriff to be showing up. But here we are.

        • pegaxs on 21/02/2023 - 08:03
          +2

          I don’t know what part of “bullshit” you didn’t understand. NRMA cannot tell the sheriff to go and seize “your friend’s” assets. It doesn’t work that way.

          It can take a very long time going through the courts to get to a point where the sheriff shows up to seize goods. A lot of ignored paperwork and ignored court appearances before a sheriff is even called.

          So, please forgive me and everyone else if we all think you are full of shit or are obfuscating the story for your own agenda.

          • Dr Fruit on 21/02/2023 - 08:35

            @pegaxs: You’re free to believe/not believe anything some random says on the internet. To be honest, if someone told me this story I would be skeptical too. But that’s exactly what happened.

            And to clarify:
            1. At no point am I suggesting NRMA asked the sheriff to seize property. I have no doubt they went through the legal process to get a writ of levy and eventually come seize property. But the timeline is correct and there are nothing missed in between. Got the letter, asked Budget Direct to take care of it, they didn’t, and here we are. See my response to the other comment - there was a writ of levy issued but without our knowledge - apparently BD had it. So they screwed the pooch 100%.

            And 2. Nah I have no agenda. Not sure what agenda I can achieve by posting in ozbargain anyway. I came on here to ask if anyone has ever been taken for a ride in the same way by Budget Direct and if anyone can give some advice if they have. Simple as that.

            • pegaxs on 21/02/2023 - 10:38

              @Dr Fruit:

              But that’s exactly what happened.

              You see, you're selling it… just aint nobody buying it…

              At no point am I suggesting NRMA asked the sheriff to seize property.

              You are. 100%. You said NRMA are chasing the money and sheriffs turned up. Who else but NRMA would it be?

              But the timeline is correct

              And there is no way you go from crash to sheriff in the time frame you are suggesting. Either you are full of shit… or "your friend" is telling you lies…

              Nah I have no agenda.

              Your "agenda" is to obfuscate the truth of the matter to paint yourself "your friend" in a position of innocence to gain sympathy. If the sheriff is there, then there is something else afoot that you are not telling us, Budget Direct is/did void your "your friend's" policy and refused to pay out, or you "your friend" didn't put in a claim until it was WAAAAAAY past due and ignored all the correspondence and court attendance notices and only acted once it was unavoidable.

              You DON'T go from crash to sheriff in that time frame.

              • Dr Fruit on 21/02/2023 - 11:37

                @pegaxs: I mean, you’ve obviously made up your mind in your judgement of this situation and my character. You can believe or not believe whatever you like.

                If you’re still interested, I’ll update the thread on my AFCA complaint results.

                • pegaxs on 21/02/2023 - 11:50
                  +1

                  @Dr Fruit: I’ve made up my mind based on previous experience, the experience of others and the information you provided. I am not judging your character personally, only the information you have provided and that this information goes against all senses of the norm. The court systems in Australia just do not work that fast.

                  And please do. Insurance companies are arseholes and I welcome people challenging them at every opportunity. I wish you luck in your endeavour fighting the man, you are going to have an up hill battle. I look forward to you posting the outcome, but I’m not going to hold my breath waiting for it.

    • bobbified on 20/02/2023 - 23:27

      Have also already made a complaint to AFCA.

      What did AFCA say? If the insurance company won't budge, AFCA can force them.

    • johno3456 on 21/02/2023 - 02:40
      +1

      As others mentioned, a Sheriff cannot just take stuff.
      The Office of the Sheriff can seize and sell a person's property after:
      1.the court has issued a writ for levy of property or
      2.the State Debt Recovery Office has issued a property seizure order because the individual failed to pay a fine.
      This is often the final measure after the debtor has had a chance to pay the court judgment or fine. Sheriff's officers visit the address of the person that owes the money or an unpaid fine to enforce the writ or order.

      Perhaps your friend has other debts he has forgotten to pay. Even if he was not covered by his policy, the sheriff does not rock up and try to take stuff. A court decision is required to affirm that a debt is owed and the amount of the debt.

      It is pointless blaming Budget Direct when it is the other party/NRMA trying to collect. If the other side is truly insured, they will deal with Budget Direct, for that is what both sides are paying for in the policy. It really should not matter if it takes BD years to pay, insurers set stuff off again each other's claims.

      Of course it is different if BD has refused the honor the policy, perhaps your friend was drunk, under influence of drugs or was not truthful when getting the BD policy.

      • Dr Fruit on 21/02/2023 - 07:35

        Actually, you are correct. The court apparently HAS issued a writ of levy of property. But how that came about remains a complete mystery.

        NRMA's lawyer obviously went through after their threatening letter was met with no response from either my friend or from Budget Direct. We called Budget Direct regarding that letter specifically and they said they'll take care of it. So obviously he elected not to respond directly to the other party's lawyer. I just don't understand how an issue that should be 100% between the two insurers needs any sort of legal action from my friend.

        Budget Direct didn't refuse to honor the policy. They're refusing to pay NRMA because whatever bill NRMA sent them for the other party's car repair was deemed excessive by BD (or so that's the story they've been telling us). It's a straightforward claim - backing out the driveway going to work, and scraped a parked car on the street. Lodged the claim, paid the excess.

    • plmko on 21/02/2023 - 03:18
      +2

      How the F does your "friend" end up with legal documents and a Sherif show up to seize property all within a month?

      For a Sherif to show up it takes months upon months or even a year considering the massive Court/Megistrate backlogs. This is as BS of a story as it gets.

      • pegaxs on 21/02/2023 - 08:05

        It’s called “bullshit” and you won’t believe this, but the internet is full of it.

    • garetz on 21/02/2023 - 03:46

      This kind of behavior from an insurance company usually comes hand in hand when both parties being insured by the same provider.

    • holdenmg on 21/02/2023 - 03:53
      +2

      Call T̶r̶a̶c̶y Ally @ A Current Affair.

      • cookie2 on 21/02/2023 - 07:02
        +1

        Actually a half decent topic compared to others so might actually be a good idea.

    • altomic on 21/02/2023 - 05:36
      +1

      escalate the issue by contacting the NSW government regulation body State Insurance Regulatory Authority (SIRA)

    • HardQuiz on 21/02/2023 - 05:49
      +4

      Was it really the sheriff or someone pretending to be ?

      • cookie2 on 21/02/2023 - 07:02

        I wondered the same.

      • Dr Fruit on 21/02/2023 - 07:38

        That's what I thought. Looked at the piece of paper they made him sign - it's a Notice to Custodian of Seizure form, by the Sheriff of New South Wales office. Pretty sure that's the sheriff.

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