In this document you will find information about us, the services and products we offer and on what basis we provide these services and products. It is designed to assist you in deciding whether to use any of our services.
Who we are and the services we offer
Our Australian Financial Services licence authorises us to give general advice only, to deal and issue general insurance products to retail and wholesale clients. General Advice does not take into account your personal needs and financial circumstances therefore you will need to consider whether this advice suits your requirements prior to acting upon it. You should read the Product Disclosure Statement (PDS) as it is designed to give you important information about the policy you are considering purchasing. We generally act as an Underwriting Agency with arrangements with an insurer to act under a binding arrangement or as their agent. When we do this we will be representing the insurer, and not you.
How we collect and use information
When we conduct business with you, most often we communicate using emails, web enabled electronic platforms and market networks to collect and/or disburse information. We will be acting on instructions provided by you to us via all electronic means. Whilst this is an effective and efficient method of doing business there are potential drawbacks and we accept no responsibility for information sent from you to us that may be incomplete or corrupt. Where you have important information that may require confirmation of receipt you should consider the use of fax or courier. We recommend that you always contact us to confirm that important information has been received by us where we are required to act on your behalf.
Duty of Disclosure
In order to make an informed assessment of the risk and calculate the appropriate premium, we need information about the risk you are asking it to insure. For this reason, before you enter into a contract of insurance, you have a duty under the Insurance Contracts Act 1984 to disclose to your every matter that you know, or could reasonably be expected to know, is relevant to the decision whether to accept this risk and, if so, on what terms. The duty also applies when you renew, extend, vary or reinstate a contract of insurance. You do not have to disclose anything that
- Reduces the risk to be undertaken by the insurer;
- Is common knowledge;
- Your insurer knows, or in the ordinary course of business ought to know; or
- If the insurer has waived your obligations to disclose.
If you do not comply with your duty of disclosure, we may be entitled to reduce our liability in respect a claim or may cancel your contract of insurance. If the non-disclosure was fraudulent, we may be able to avoid the contract of insurance from its beginning. This would have the effect that you were never insured.
Cooling off period – Retail insurance only
If you decide that you do not need a contract of retail insurance which has been arranged on your behalf, you may change your mind during the cooling off period. Our standard cooling-off period is 14 days, although we may offer a longer cooling off period. Refer to the Product Disclosure Statement (PDS) for details of the cooling off period applicable to your insurance, and how to cancel your insurance during the cooling off period. You cannot cancel the insurance if you have made, or are entitled to make, a claim under it.
Cancellation and refunds
If you decide that you do not need a contract of insurance you may cancel this policy by giving notice in writing. Where we wish to cancel the policy, we are only permitted to do so in accordance with the Insurance Contract Act 1984.
How we are remunerated and other relationships
For underwriting your insurance policy our remuneration is received as commission based on a binding agreement we have entered into with an Insurer. Commission represents as a percentage of the premium you pay. This is standard insurance industry practice and the percentage depends on the type of insurance and the nature of the binding agreement we have entered into. Our rates of commission typically range from 10% to 30%, before any government fees or charges. We may also charge a service fee, which varies according to the level of service rendered and the commission we receive. This fee will always appear on your invoice.
Our employees are paid a market salary that may include bonuses based on performance. We and our staff may also receive non-monetary benefits such as sponsorships of conferences and functions, and meals and entertainment. We closely monitor these activities to ensure they do not create a conflict with your interests. Where a third party such as a trade association or other business has referred you to us or endorsed our services to you, we may share a part of our remuneration with them or pay an agreed referral rate. We will pay the third party out of our total commission and/or fees and never in addition to these amounts.
In accordance with the Corporations Act 2001 we have professional indemnity insurance in place which covers us, our employees and our distributors (even after they cease to be an employee or distributor) for any errors or mistakes relating to the financial services provided. This insurance will meet claims, provided that our insurer is notified of events likely to give rise to a claim and within the relevant policy period.
Complaints and Disputes
We and YourCover will do everything possible to provide a quality service to you. If you have any concern or complaint YourCover staff are always available to listen to you and to help where they can.
If, after talking to a staff member, you wish to take the matter further, YourCover has a Complaints and Dispute Resolution Procedure which undertakes to provide an answer to you within fifteen (15) working days. Please contact the Disputes Resolution Manager – see contact details in this Product Disclosure Statement.
Under the Corporations Act 2001 Retail Clients are provided additional protection from other clients. The Act defines Retail Clients as – Individuals or manufacturing business employing less than 100 people or any other business employing less than 20 people and who purchase the following types of insurance: Motor vehicle, home building, home contents, sickness and accident, consumer credit, travel, personal and domestic property, and medical indemnity insurance.
If you are then not happy with any decision, you may take your complaint to the Financial Ombudsman Service Limited (FOS), an independent and external dispute resolution body subject to eligibility. Access to the FOS process is free of charge to you. You can contact them - see contact details in this Product Disclosure Statement.
Currency of this FSG
This FSG applies from 1 August, 2018 and remains valid unless another FSG is issued to replace it. If we give you a supplementary FSG or other documents relating to our services or any products, they will not replace this FSG however you should read them carefully.