Lodging a complaint
Insurance Brokers Disputes Limited (IBD) This is a free consumer service designed to handle complaints and help resolve problems between insurance brokers and other financial service providers (other than insurance companies) and their clients. IBD provides support to help you resolve problems quickly and efficiently, without having to resort to costly litigation.
IBD is overseen by a board of directors to ensure your interests are represented. The IBD Board consists of an independent Chairman, Richard Smith, formerly the Chief Manager for general insurance with the Australian Prudential Regulation Authority and Deputy Commissioner at the Insurance and Superannuation Commission. The other board members consist of two industry representatives, NIBA Chief Executive Noel Pettersen and industry representative and former NIBA broker Bob Elder, as well as two consumer representatives, financial counsellor Peter Gartlan and consumer lobbyist Jenni Mack.
Complaints against insurance companies are handled by the Insurance Ombudsman Service. Contact 1300 78 08 08 or visit www.insuranceombudsman.com.au.
IBD Limited covers policies including:
- small business policies
- sickness and accident
- life
- travel
- motor vehicle
- home buildings and contents
- consumer credit
- personal and domestic property
Most insurance broking firms subscribe to IBD, including all NIBA members. The Australian Securities and Investments Commission requires financial service organisations to participate in a Government-approved external complaints resolution scheme like IBD.
All IBD members subscribe to the Insurance Brokers Code of Practice, which contains a list of standards of good practice. These include clear and prompt communication with the client, proper representation when arranging your policies and providing support in the event of a claim. Copies of the Code and IBD's Terms of Reference (outlining its scope and procedures) are available both from your broker or IBD's website www.ibdltd.com.au.
If you have any query about whether your complaint can be handled by IBD, call 1300 78 78 08.
If you have a complaint: First discuss the problem with the complaints or customer relations officer of your insurance broker or financial service provider. Under the IBD scheme, participants are required to have internal systems to monitor and resolve complaints. They must agree to make a decision about your complaint quickly, usually within 20 working days.
If you are still not satisfied, you should contact IBD's Compliance Manager who is there to assist. Generally problems can be fixed with a single telephone call. If you are not happy with the outcome after 20 working days, your dispute will be passed on to the IBD's Referee.
The Referee, who is legally qualified, will issue a decision within 20 working days. Under IBD Terms of Reference, insurance brokers and financial service providers must abide by decisions made by the Referee, although they are not binding on consumers.
Ask whether your insurance broker or financial service provider participates, or check with the IBD.
If you already have insurance or are in the process of buying insurance and you would like to make a complaint about an insurance broker or financial service provider please contact Insurance Brokers Disputes Limited.
To contact IBD call 1300 78 78 08 or email info@ibdltd.com.au.