Update to Connective’s Group PI Insurance Policy

October 22nd, 2018

 

As you know, the new Australian Financial Complaints Authority (AFCA) will commence operation as the sole External Dispute Resolution (EDR) scheme for our industry on 1 November 2018. Under the new scheme, AFCA will have the ability to award compensation payments to consumers up to a limit of $500,000 for any one claim.

This is an increase over the maximum compensation limit of $323,500 previously available via the old CIO and FOS EDR schemes.

Connective’s Group Professional Indemnity (PI) Insurance providers, Insurance House and ProRisk, have updated our policy accordingly. We have received confirmation that effective from 1 November 2018, the limit for any one claim from an EDR scheme under our group policy will increase to $500,000. So, if you hold your PI Insurance under Connective’s group policy, you can rest assured you will be covered in the event a consumer makes a compensation claim against you.

What if you have your own PI Insurance?

If you do not hold your PI Insurance under Connective’s group policy and your PI Insurance is with another provider, we recommend that you contact them immediately to ensure that your policy will cover this increased EDR scheme compensation amount. Failure to check could potentially result in you being inadequately covered should a claim be made against you by a consumer.

If you have any questions about PI Insurance and your obligations regarding AFCA, please contact your local Compliance Support Manager. Simply click your help icon in Mercury to get in touch via the Helpdesk and we’ll be happy to assist. If you’d like to know more about joining Connective’s Group PI Insurance Policy, please chat with your local Broker Support Manager or visit Connective Wiki.