Perth Construction Firm Penalised for Insurance Lapse
Perth Construction Firm Penalised for Insurance Lapse
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
A construction company in Perth has been penalised for initiating building works without securing the legally-required home indemnity insurance, resulting in a $3500 fine and an additional $736 in costs.
In Western Australia, legislation mandates that builders obtain a Home Indemnity Insurance (HII) policy for any residential construction projects exceeding $20,000 prior to receiving payment or commencing with construction.
This insurance offers homeowners a safeguard against financial setbacks should a builder be unable to finish or rectify construction due to reasons such as death, disappearance, financial insolvency, or the revocation of the builder's registration due to financial reasons.
The Armadale Magistrates' Court heard the case where DBD Developments had proceeded with laying the concrete foundation and other preliminary installations for a client's two-storey home in January 2022. However, the requisite HII was not procured until six months later, in July.
Saj Abdoolakhan, the Building Commissioner, highlighted the homeowner's dilemma, noting that two interim payments had been made in the absence of insurance protection.
He stated, "The builder was eligible for this insurance and should have obtained it before commencing work, rather than six months later. This conduct undermines the protections provided by WA’s home building contract laws and the overall integrity of the building approvals process."
This incident resonates amidst ongoing reviews in the construction sector focusing on enhancing compliance and safeguarding consumer interests, as highlighted in the original report from Armadale News.
Instances like these underline the crucial importance of transparency and adherence to legal obligations in the construction industry, particularly in protecting homeowners from potential financial vulnerabilities.
The case serves as a potent reminder for builders across the region to prioritise due diligence and adhere to statutory regulations to maintain trust and uphold industry standards.
The penalty not only enforces existing laws but also signals to other builders the serious repercussions of bypassing essential mandates that protect both builders and clients alike.
Published:Tuesday, 11th Feb 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Financial Complaints Authority (AFCA) has recently ruled against TAL, a prominent life insurer, for terminating a policyholder's income protection benefits without prior notice. This decision underscores the critical importance of procedural fairness in the management of insurance claims. - read more
The Actuaries Institute has issued a call for immediate action to address the escalating financial strain that mental illness is placing on Australia's insurance and compensation systems. This appeal underscores the pressing need to ensure the sustainability of the nation's financial safety net in the face of increasing mental health-related claims. - read more
Fitch Ratings has projected that Australian insurers will continue to implement premium increases, with gross written premiums expected to grow by mid to high single digits. This forecast is driven by the need to offset rising claims and increased allowances for natural hazards. - read more
TelstraSuper, a profit-for-member superannuation fund, has announced a substantial decrease in income protection insurance premiums for its members. Effective from 1 July 2023, members can expect reductions ranging from 11.5% to 30%, following a comprehensive review of the fund's insurance pricing. - read more
Recent data from Plan For Life indicates a sharp decline in individual income protection insurance sales in Australia, with new risk income sales experiencing an 8.3% downturn in the year ending September 2024. This contrasts with previous periods of growth, highlighting shifting dynamics within the insurance market. - read more
Australia's insurance industry is experiencing a significant shift as mental health conditions have become the leading cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health issues now account for nearly one-third of all TPD claims, marking a substantial change in the industry's claim patterns. - read more
When life throws unexpected challenges our way, the assurance of financial stability can be a beacon of hope amidst the uncertainty. For many Australians, income protection insurance is that beacon, safeguarding their livelihood and providing a crucial safety net when they need it most. It's more than just a policy; it's a strategic step towards longer-term peace of mind. - read more
Income protection insurance serves as a financial safety net, designed to support individuals in the event that they are unable to work due to illness or injury. The significance of this type of insurance lies in its ability to provide a continuation of income during tough times, ensuring that one's financial responsibilities are taken care of. - read more
Income protection insurance is a key component of financial planning that safeguards your earning potential in the untimely event of illness or injury. In Australia, it reassures individuals that their most valuable asset, the ability to earn, is shielded against unforeseen circumstances. Adequate income protection can provide peace of mind, with the security of a regular income even when you're unable to work. - read more
Welcome to the beginning of your journey through the maze of insurance policy terms and conditions. For many Australians, navigating through an insurance policy can be as daunting as trying to understand a legal document. That's because, in a way, it is one. This section is designed to set the foundation for a comprehensive understanding of the key terms that impact your insurance claim outcomes. - read more
Income protection insurance serves as a vital safety net for Australian workers, ensuring financial stability in the face of unexpected illness or injury. As the landscape of work and health continues to evolve, understanding the essentials of income protection becomes increasingly crucial for anyone who relies on a steady income to support themselves and their loved ones. - read more
Hello to all the self-employed Aussies out there! Embarking on the journey of self-employment brings with it a unique set of challenges and freedoms. One area we often overlook is the need for a solid financial safety net, customized to our varied incomes and work lifecycles. That's where income protection insurance steps in as a critical component for ensuring financial stability. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Liability Insurance: A type of insurance that provides protection against claims resulting from injuries and damage to people and/or property.