Youi acknowledges “inadequate” response

"Significant changes" already made

Youi acknowledges “inadequate” response

Insurance News

By Terry Gangcuangco

It looks like Youi Pty Ltd has learned its lesson.

As previously reported, the Federal Court found the general insurer in breach of its duty of utmost good faith in the way it handled a 2017 claim which dragged on until November the following year.

Among the Insurance Contracts Act breaches was Youi’s failure to take reasonable steps to inform the claimant that the appointed repairer had been the subject of numerous quality and delay complaints. The insured made a claim after a severe hailstorm in Broken Hill in late 2016.

Now, in response to the ruling, a spokesperson for the insurer told Insurance Business: “Youi acknowledges its response to the Murphy’s claim was inadequate and accepts the Federal Court judgement of November 26, 2020 and is disappointed that we didn’t meet our usual high level of service, which we pride ourselves on and is the cornerstone of our success.

“Since the lodgement of this claim in January 2017, Youi has made significant changes to the way claims are managed to ensure repairs occur in a timely manner and all customers consistently receive outstanding service.”

According to Youi, the changes include a comprehensive review of its service provider network and the supervision of repair quality. The company also pointed to improved management of temporary accommodation, as well as enhanced customer complaint identification, capture, and resolution.

The court proceedings were initiated by the Australian Securities & Investments Commission (ASIC) in April, after Commissioner Hayne referred Youi to ASIC.

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