ASIC has commenced proceedings in the Federal Court against Youi Pty Ltd (Youi) for alleged breaches of the Insurance Contracts Act 1984, in relation to Youi’s duty of utmost good faith in handling a building and contents insurance claim made by a policyholder.
The policyholder first made an insurance claim in January 2017 following a severe hailstorm in their home town of Broken Hill in November 2016.
ASIC alleges that Youi failed to meet the standard imposed by the duty in handling the claim as it took nearly two years to settle, with the repairs to the home finally being completed in November 2018.
ASIC is seeking declarations in relation to s13 of the Insurance Contracts Act.
