A new exclusion has appeared on motor policies issued by NRMA and RACV. Quietly tucked away on page 31 of an 88 NRMA policy booklet and page 69 of an 80 page RACV wording is a clause reading:
“We may refuse a claim, cancel this policy, or do both if at the time of the incident your vehicle was being driven or was attached to a vehicle being driven in a manner which resulted in a deliberate exposure to any wilful or reckless act or exceptional danger”.
This clause is outside the motor policy wording prescribed by law. The law requires an insurance company to notify a prospective customer in writing that their policy contains an unusual provision – but how many people have been so warned?
Moreover the insurance company itself has the power to decide whether or not there was deliberate exposure or reckless act. Most motor accidents are the result of thoughtless, and sometimes stupid and/or reckless driving, but now the consumer is faced with an exclusion which specifically narrows the cover.
Have a look at your NRMA or RACV motor policy and ask yourself whether you were in fact warned in writing of this restriction, and if you weren’t ask your insurer why not. There is far too much going on in the insurance industry which is less than frank and open, and it is high time such tactics were brought to the consumer’s attention. The government will take no action, but this site will expose such issues.