The Australian Financial Complaints Authority (AFCA) has ruled against Blue Zebra Insurance, ordering the company to pay a policyholder more than $14,800 for hail damage after initially offering less than a quarter of that amount.
The dispute arose after a vehicle was damaged in a severe storm on 24 December 2023. The owner, who held a comprehensive motor vehicle insurance policy, lodged a claim that Blue Zebra partly accepted. The insurer argued that only some of the damage was caused by hail and offered a cash settlement of $3,247, contending that other dents were pre-existing or inconsistent with storm damage.
The complainant rejected this assessment, maintaining the car was undamaged when purchased in September 2023 and provided photos taken weeks before the storm as evidence. AFCA agreed, finding the insurer’s expert reports lacked sufficient reasoning and that the consumer had met the burden of proof.
In its determination, AFCA said it was satisfied that “all damage claimed occurred during a storm event in accordance with the terms and conditions of the policy.” The authority dismissed the insurer’s arguments about the age of the vehicle and the pattern of hailstorms, ruling these lacked adequate support.
Blue Zebra has been directed to cash settle the claim for $14,856, within 14 days of the complainant accepting the decision. AFCA concluded the outcome was fair, as no exclusions were identified that could reduce the insurer’s liability.