A finding of the Australian Financial Complaints Authority (AFCA) has been welcomed by the Motor Trades Association of Australia (MTAA) and the Australian Motor Body Repairers Association (AMBRA) as validation of the need for an independent consumer complaint handling authority for those experiencing difficulties with financial and insurance firms.
In this benchmark ruling, AFCA found that an insurance company was bound, under the terms of its policy, to settle a policyholder’s claim in accordance with the consumer’s preferred car repairer’s quote.
The car insurance policy entitled the policyholder to choose their own car repairer, but the policy also gave the insurer a discretion to determine how much it would pay for those repairs.
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