Is there a time limit on insurance claims in Australia?
If we have a car accident or our home has been damaged, most of us will reach for the phone as soon as possible but is there a time limit on insurance claims in Australia?
What if you’re unable to make an insurance claim immediately? Will you miss out on a refund or replacement if you don’t lodge it by a certain time?
It really depends on the insurance you have taken out and what you’re claiming.
Home and contents insurance
There are different types of home and contents insurance, including comprehensive coverage for accidental breakages, as well as theft, and natural disasters such as storms and bushfires. If you have items of particular value you may have listed them separately to ensure they are fully covered in the event of theft, loss or damage.
The amount of time you have to make a claim will be determined by the insurance policy’s terms and conditions. These can vary from 30 days to up to a year, so check the fine print and call your insurer as soon as possible to confirm.
If you are in shock or injured, it is reasonable that you may take some time to worry about insurance claims. Wait until you are well enough, or calm enough, before you ring the insurer. Your call may be recorded and you may inadvertently say the wrong thing.
Once you have spoken to your insurer or lodged your claim electronically, the insurer has 10 days to either accept or deny your claim, or tell you they need more information or an assessment to determine the outcome.
They will send out an assessor, usually within five days, so try not to touch or move anything if possible before the damage has been assessed. If you need assistance to avoid further damage, such as the house is unsecured or exposed to the elements, let the insurer know the urgency. And if there has been a break-in, contact the police so you can provide a report.
Comprehensive and third party car insurance
If you have taken out comprehensive car insurance, there is unlikely to be a time limit for lodging a claim. This type of insurance generally covers you for theft and damage in an accident, as well as damage to other people’s property, and sometimes roadside assistance and temporary replacement vehicles.
However, insurers encourage you to file a claim as soon as possible to avoid unnecessary delays. “With time, there may be changes to an at-fault driver’s circumstances and contact details; memories fade and could impact recollection of key facts, and evidence for a claim can either be lost or be harder to collate,” a Suncorp Group spokesman told Drive.
If you are in shock or have been badly injured, you are unlikely to be in a hurry to make a claim. But if you are planning to make a claim under compulsory third party (CTP) insurance, you need to be aware of the strict time limits in your state or territory.
This is the insurance included as part of your car registration and covers medical treatment and personal care after an injury or death in a motor vehicle accident.
In Victoria, there is a 12-month claim limit from the date of the accident or the date an injury becomes evident; the same in Tasmania. In NSW, where it is known as GTP Green Slip, residents must lodge a claim within three months of the accident but if you submit within 28 days you may be eligible for back pay.
In Queensland, you have nine months from the crash date or “the first appearance of symptoms of an injury”. In the ACT, you have just 13 weeks from the date of the accident to lodge a claim with the insurance provider or a clear explanation as to why you couldn’t make that time frame.
Western Australians may lose their right to claim compensation if they do not initiate proceedings within three years from “the date the person is aware of the injury”. In the Northern Territory, any claims lodged after three years will be denied, while South Australia gives you six months to make a claim or as soon as reasonably practicable.
If your insurance claim is taking too long to be sorted or you’re not happy with the way the insurer has responded, lodge a complaint with us and we’ll help you handle it.
