This FSG was reviewed on 1st October, 2019.
This Financial Services Guide contains information about our services and charges, your rights as a client and other things you need to know in relation to insurance matters including how any complaints you may have will be dealt with.
We trust it will assist you in deciding whether to use our services.
If you ask us to act as your general insurance broker, we will do so on the terms set out in this Guide. Unless you tell us otherwise in writing, we assume that you agree with these terms. We will also provide you with a Letter of Appointment which, together with this Guide, will record the basis of our relationship. Please retain these documents for future reference.
Depending on the types of insurance you require you might also receive some other documents after or at the time we advise you about your insurance needs including:
Statements of Advice – these will be summaries of our advice, fees, commissions and the basis on which our advice was provided;
Product Disclosure Statements – these will contain information about the products we recommend to you and are designed to help you make an informed decision about the insurance products we are recommending
Invoices and Confirmation notices – these will confirm the details of transactions we have arranged on your behalf.
If you need more information or have any questions, please feel free to telephone us.
IJD Insurance Brokers Pty Ltd holds Australian Financial Services Licence No 237304 under the Corporations Act 2001. We are authorised to provide general insurance broking services including personal advice for business and individual insurance products. Our contact details are
Suite 6, 90 Mona Vale Road, MONA VALE NSW 2103
02 9998 2700
IJD Insurance Brokers is committed to providing sound advice based upon your unique needs and our comprehensive market knowledge.
We offer a range of services to assist you to protect your assets. These include:
Reviewing and advising on your insurance needs
Arranging and renewing insurance contracts on your behalf
Arranging premium funding, if required
Assisting with insurance claims
There are a wide range of insurance policies we can arrange. These include but are not limited to:
Business, Commercial and Industrial insurances
Motor Vehicle insurance (private & commercial use)
Home building insurance
Home contents insurance
Sickness & Accident insurance
Pleasure craft insurance
Compulsory Third Party Personal Insurance
To enable us to provide advice which is appropriate to your circumstances, we will need you to provide us with complete information about the risk(s) to be insured, your situation and your needs and objectives. You should also tell us about any relevant changes as they occur
If you are unable or choose not to provide some information to us, we will be unable to comprehensively review your circumstances. As this may limit our ability to make appropriate recommendations, you will need to assess the appropriateness of our advice to your needs before acting on it.
IJD Insurance Brokers is an independently owned insurance advisory firm
IJD Insurance Brokers is a member of the Steadfast Group which is a cluster group of like minded insurance brokers.
I J D Insurance Brokers Pty Ltd is a shareholder of Steadfast Group, Steadfast have exclusive arrangements with some insurers where they receive between 0.5 – 1.5% commission on the premium placed by us with those insurers. These payments are used to operate Steadfast
We have access to a range of Steadfast services including operating and compliance tools, advice and assistance from professional bodies, group insurance arrangements, product comparison and placement support, claims support and purchasing arrangements. These shareholder services are either funded or subsidised by Steadfast or available exclusively to shareholders for a fee.
HOW WE WILL LOOK AFTER YOUR INSURANCE NEEDS
You need to give us instructions in writing or by another method agreed by us. We will tell you what is possible when you contact us.
Contact us as soon as possible if you need cover for a risk or property that is not insured. If you need immediate cover, we will need details of the property or risk and all other information which you need to disclose to the insurer.
We will then send you a proposal for completion. You will need to complete and sign this and return it to us as soon as possible.
We will send the original insurance contract documents as soon as they are issued correctly by your insurer. As these are legal documents, you should keep them in a safe place.
Where possible, we will give you at least 14 days notice of expiry of any insurance contract which we arranged or last renewed for you.
At that time we will send you an offer to renew the insurance contract and invoice you for the cost of renewal. If you want to change the details of the cover, contact us as soon as you receive the renewal offer. If you wish us to renew the contract on your behalf, you must pay the premium and other charges before the date shown on the invoice.
If you arranged or renewed insurance directly with an insurer or through another broker, we will not be responsible for notifying you of expiry or arranging renewal.
You should carefully monitor and review that your insurance contract is adequate to cover your assets or business activities.
If you want to vary any cover, eg by increasing the sum insured or adding other property, please provide us with details of the changes you require and any other information you need to disclose to the insurer.
We will arrange the variation with the insurer and provide you with written confirmation.
We will receive your claims notifications, assist and advise you regarding the scope of cover and pass the information to the insurer.
If a loss adjustor is appointed we shall, with your permission, pass on your contact details.
We will promptly forward to you all claims documentation, insurance company settlement cheques and other information.
If any claims are outstanding when you terminate our appointment as your insurance broker, we will provide details of the claim(s) to your new insurance broker so that they may continue to negotiate settlement on your behalf
FEES FOR OUR SERVICES
You are entitled to know how and what we will charge for our services and what other benefits we receive.
Commission is a payment received by our brokerage by the insurer for work we perform on their behalf. Our commission will be calculated based on the following formula:
X= Y% x P
In this formula:
X = our commission
Y% = the percentage commission paid to us by the insurer.
Our commission varies between 0% and 30%.
P = the amount you pay for any insurance policy (less any government taxes, charges and levies included in that amount).
The activities that this payment represents include the ongoing maintenance of the policy, amending and endorsing the policy as required, monitoring and preparing renewals, lodging claims, assisting you to make claims, collection and processing of client payments, processing and lodging of client refunds. It is important to remember that the commission we are paid includes remuneration for administrative and other services the insurer would include in its pricing if it were issuing the product directly. We will provide you with specific information about the basis and amount you will be charged before or at the time we arrange your insurance.
Broker Fee is the fee we charge you for securing insurance on your behalf. This fee covers our time to perform risk analysis, gather information from previous insurers, prepare claims histories, perform product comparisons, seek multiple quotes, provide advice and to monitor insurance market trends.
We will provide you with specific information about the basis and amount you will be charged before or at the time we arrange your insurance, in a document called a Statement of Advice.
Our charges include GST. Some of our charges may be tax deductible.
If we hold your money in trust pending payment to the insurer, we also receive the interest earned.
How are our advisers paid
Our advisers are paid a salary.
If another insurance broker has referred you to us, we may pay them a part of any commission received. This will not increase the amount you pay us.
TERMS OF PAYMENT
We accept MasterCard, Visa, Money Order, EFT/Direct Deposit and cheque. If you choose to pay by credit card, we reserve the right to impose a surcharge for this facility.
We will invoice you for the premium, statutory charges (eg stamp duty, fire services levy, etc) and any fees we charge for arranging your insurances. You must pay us within 30 days of the date of the invoice or, in the case of a renewal, before the expiry date of the contract of insurance.
If you do not pay the premium on time, the insurer may cancel the contract of insurance and you will not be insured. The insurer may also charge a short term penalty premium for the time on risk. We do not accept responsibility for chasing responses from you to correspondence or notices sent to you by our office.
Our invoices contain many required notices which should be read carefully before entering into the insurance contract. We are required by the Insurance Contracts Act 1984 to provide you with these notices.
It is imperative that you check all your insurance certificates and policy wordings to ensure that they provide the cover you require and that you fully understand their limitations.
If any inaccuracies are noted, you are obliged to contact our office immediately so that we can ensure adequate and accurate cover.
If you need more information or have any queries please feel free to contact our office.
Your payment of your premium denotes your acceptance of these terms and notices.
Premium Funding products enable you to pay your premiums by instalments. Although they do not require any security, premium funders do charge interest.
In some instances we can arrange premium funding on your behalf if you require it. We may receive a commission based on a percentage of the premium from the premium funder for doing so. We will tell you the basis and amount of any such payment before or at the time the premium funding is arranged.
We cannot cancel a contract of insurance without written instructions from a person(s) who is authorised to represent each of the parties who are named as insureds in the contract of insurance. We cannot cancel any contract of insurance which is subject to the Marine Insurance Act 1909.
If a contract of insurance is cancelled before expiry of the period of insurance, we will refund the net premium we receive from your insurer. We will not refund our fees or commission for arranging the insurance.
Duty of Disclosure
In order to make an informed assessment of the risk and calculate the appropriate premium, your insurer needs information about the risk you are asking it to insure.
For this reason, before you enter into a contract of insurance, you have a duty under the Insurance Contracts Act 1984 to disclose to your insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer’s decision whether to accept the risk and, if so, on what terms. The duty also applies when you renew, extend, vary or reinstate a contract of insurance.
You do not have to disclose anything that:
Reduces the risk to be undertaken by the insurer;
Is common knowledge;
Your insurer knows, or in the ordinary course of its business, ought to know; or
If the insurer has waived your obligation to disclose.
If you do not comply with your duty of disclosure, your insurer may be entitled to reduce its liability in respect of a claim or may cancel your contract of insurance. If the non-disclosure was fraudulent, the insurer may be able to avoid (or cancel) the contract of insurance from its beginning. This would have the effect that you were never insured.
One important matter to be disclosed is the history of losses suffered by the person seeking insurance or any closely associated person or entity. As you are responsible for checking that you have made complete disclosure, we suggest that you keep an up to date record of all such losses and claims.
If you have any questions about whether information needs to be disclosed, please contact us.
You must also notify your insurer of any significant changes which occur during the period of insurance. If you do not, your insurances may be inadequate to fully cover you.
We can assist you to do this and to ensure that your contract of insurance is altered to reflect those changes.
Cooling Off Period – Retail insurance only
Retail insurances refer to policies that relate to a person rather than a corporation and include insurances such as home, motor, boat and sickness policies.
If you decide that you do not need a contract of retail insurance which has been arranged on your behalf, you have a minimum of 14 days from the earlier of the date you receive confirmation of the contract and the date it was arranged to change your mind. You must tell the insurer in writing that you wish to return the insurance contract and have the premium repaid.
If you do so, the insurance contract will be terminated from the time you notified the insurer and the premium will be returned. The insurer may retain its reasonable administration and transaction costs and a short term premium.
You cannot return the contract of insurance if it has already expired or if you have made a claim under it.
We are committed to protecting your privacy. We use the information you provide to advise about and assist with your insurance needs. We only provide your information to the insurance companies with whom you choose to deal (and their representatives). We do not trade, rent or sell your information, nor do we market products to you have not requested. If you have a preferred time, or means for us to contact you please let us know, and we will note this in your file.
Sums Insured – Average and Co-Insurance
Some insurance contracts require you to bear a proportion of each loss or claim if the sum insured is inadequate to cover the amount of the loss. These provisions are called ‘average’ or ‘co-insurance’ clauses.
If you do not want to bear a proportion of any loss, when you arrange or renew your contract of insurance, you must ensure that the amount for which you insure is adequate to cover the full potential of any loss. If you insure on a new for old basis, the sum insured must be sufficient to cover the new replacement cost of the property.
Interests of other Parties
Some insurance contracts do not cover the interest in the insured property or risk of any one other than the person named in the contract. Common examples are where property is jointly owned or subject to finance but the contract only names one owner or does not name the financier.
Please tell us about everyone who has an interest in the property insured so that we can ensure that they are noted on the contract of insurance.
Waiver of Rights
Some insurance contracts seek to limit or exclude claims where the insured person has limited their rights to recover a loss from the person who was responsible for it, eg by signing an agreement which disclaims or a limits the liability of the other party.
Please tell us about any contracts of this type which you have or propose to enter into.
The Regulations to the Insurance Contracts Act set out standard terms for the cover which is provided by motor vehicle, home buildings, home contents, sickness and accident, consumer credit and travel insurance (including a minimum amount of insurance).
If an insurer wants to alter these terms or offer less than the minimum amount of insurance they must clearly inform you in writing that they have done so. They can do this by providing you with a Product Disclosure Statement or a copy of the insurance contract.
If an insurer wants to rely on a term in a contract of insurance which is not usually included in contracts that provide similar cover, they must clearly inform you in writing of that term. Again, they may do so by providing you with a copy of the insurance contract.
Our professional indemnity insurance
We have professional indemnity insurance in place which covers us for any errors or mistakes relating to our professional broking services. This insurance meets the requirements of the Corporations Act and covers the services provided by our advisers which includes after they cease working with us provided we notify the insurer of the claim when it arises and this is done within the relevant policy period.
COMPLAINTS AND DISPUTES
If you are not fully satisfied with our services, please telephone our Complaints Officer. We will acknowledge your complaint in writing and endeavour to resolve your problem within 20 working days.
If you are still not satisfied, we subscribe to the Australian Financial Complaints Authority (AFCA) which handles complaints against brokers involving amounts up to $100,000 and relating to a variety of small business and domestic processes. You can refer your complaint to AFCA (ph. 1300780808) who will conciliate with a view to seeking a solution that is acceptable to both parties
If the dispute remains unresolved after a further 20 days, it will be referred to the AFCA whose decision is binding on us (but not on you).
Further information about the FOS is available from our office.