The man alleged that Open Insurance had not sufficiently communicated this exclusion, relying only on a modification questionnaire completed at the policy's inception in July 2022. However, AFCA's review found that while the initial and renewal insurance certificates lacked explicit mention of this requirement, the accompanying product disclosure statement clearly instructed policyholders to inform the insurer of any modifications.
After seeking to add the tent, the man was notified that his vehicle could no longer be covered under the existing policy. While AFCA remarked that the insurer might have improved communication by providing explicit records of underwriting responses, it found no financial loss on the man's part, as he benefited from the policy whilst insured and cancelled before attaching the tent.
The debate around whether the tent qualified as a modification or merely an accessory was settled by the authority in favor of the insurer. AFCA determined that the tent sufficiently altered the car's characteristics and agreed with the insurer's decision not to issue a refund.
This verdict underscores the importance for policyholders to diligently review product disclosure statements and maintain proactive communication with their insurers regarding any vehicle modifications.
