IAG CTP DEBACLE...


THIS IS AN IMPORTANT ISSUE FOR MOTORCYCLISTS,
ESPECIALLY THOSE WHO HAVE AT SOME STAGE PAID FOR A
CTP GREEN SLIP FROM IAG.


FOR AT LEAST THE PAST 5 YEARS, I HAVE HAD AN ANOMALY WITH MY IAG GREEN SLIP. EACH YEAR WHEN I RECEIVED MY GREEN SLIP THE QUOTED PREMIUM WAS ABOUT $170 MORE THAN THE AMOUNT I WOULD EVENTUALLY PAY. WHY? THE ASSUMPTION BY IAG THAT MY MOTORCYCLE WAS NOT COMPREHENSIVELY INSURED. EVERY YEAR I MANAGED TO REDUCE MY GREEN SLIP SUBSTANTIALLY BY SHOWING MY COMPREHENSIVE INSURANCE POLICY (FROM ANOTHER COMPANY). BUT IN 2005, I HAD HAD ENOUGH OF THIS AND WANTED FURTHER ANSWERS FROM IAG. WHAT FOLLOWS IS A TRANSCRIPT OF THE CORRESPONDENCE BETWEEN MYSELF AND IAG WHICH LOOKS LIKE GIVING MOTORCYCLISTS A WIN. KEEP THE BASTARDS HONEST!


The initial e-mail to IAG 17/05/2005 09:10


Yesterday I paid my registration on my motorcycle, part of which is the payment of my IAG Green Slip. For at least the 5th year running, I note the amount shown to pay on the green slip is at least $150 in excess of the amount that I will end up paying. Reason - you require a confirmation that the vehicle is comprehensively insured.
Firstly, I cannot see why there would be such a difference whether the vehicle has comprehensive insurance or not, but that's another issue. What irks me is that nowhere on the Green slip does it state that by confirming the vehicle to be comprehensively insured would result in a reduced premium. Each year I present my insurance papers and reduce my premium.
Each year I speak to the clerk whom I make my payment to, saying how this is an oversight. Each year there is a genuine concern from your employees that this will be looked into, but nothing ever seems to change. They (your staff) seem to intimate that this must be for motorcycles only, as it is apparently shown on renewals for cars (variance of premium when you can prove the vehicle is comp. insured).
My observations are thus...
1. It seems you either do not want motorcycles being CTP insured with you,
or...
2. You only want to CTP insure a motorcycle if they have the comprehensive insurance with you,
or...
3. You are willing to accept the higher CTP payment from those who chose not to question it, making this a matter of non-disclosure.

I would be pleased for a response to this issue. I am particularly interested in all the motoring public being aware of what they are being charged for.

From your point of view, I'm sure there are many people who, when receiving their renewals, see that the price is too high from IAG, and source a cheaper alternative. But perhaps that is what you really want.
Regards
Rob Milton

IAG’s response…18/05/2005 6:11:13 pm

Dear Mr Milton
Thank you for your email regarding why it is not printed on your CTP Greenslip renewal that you will receive a discounted premium if you verify full Comprehensive insurance.
Initially, may I thank you for taking the time to raise your concern with us as it is important that we receive feedback favourable or otherwise, from all customers.
On behalf of IAG Insurance I would like to ask that if you have a copy of the renewal paperwork that we sent you with this omission on it I would like to see this and refer it on to the appropriate department. If it can be determined that it is a printing error we will endeavour to amend this as soon as possible because as you mention, many people would not follow up with contacting us with their comprehensive insurance details to receive a lower premium if there is no mention on the renewal of this.
My fax number is 02 9292 1769 and please mark the fax 'Attention Name withheld at Network Support'. Please also include your contact phone number on the fax.
Once again thank you for your email and for future enquiries please do not hesitate to visit www.IAG.com.au
Yours sincerely,
Name withheld
Internet Support Group

After faxing proof of the anomaly to IAG, I sent the following e-mail…

23/05/2005 09:18
G'day,
As per your request, I faxed 5 pages on Friday morning to 02 9292 1769 Attn Name withheld.
I look forward to your prompt response.
Rob Milton

Then came the response I’d been waiting for…24/05/2005 7:24:46 pm

Dear Mr Milton
Thank you for your further email confirming that you have faxed me the paperwork requested.
I have received this and have contacted our CTP Underwriting department regarding the issue you have mentioned. The information I received from them is as follows:
Historically, since IAG Insurance took on CTP Greenslip Insurance for motorcycles, renewals have not had the wording printed on them regarding the confirmation of comprehensive insurance in order to receive a reduced premium. Other vehicle classes such as cars for example do have the wording on the greenslip. The reason for this is not fully known to myself as I am not an underwriter or specialist in the CTP department, however they have mentioned that one of the reasons may be due to the fact that CTP Insurance for motorcycles is a very small part of our overall portfolio.
I am more than happy to forward your email and your suggestion onto our CTP underwriting manager so that they may consider implementing the change with future reviews of our CTP Greenslips and the way they are printed. I have Carbon copied our correspondence to my referral and the Underwriting manager in our CTP department so they are aware of your concerns.
Once again thank you for your email. I hope this has been of help to you and please do not hesitate to contact us if you have any future enquiries.
Yours sincerely
Name withheld
Internet Support Group
IAG Insurance
Insurance Australia Group (IAG)

And now for the demand to IAG… 27/05/2005 2:59:24 pm

G'day Name withheld & the CTP underwriting manager,
Thanks for your reply.
I appreciate the acceptance that indeed the motorcycle green-slips did not state the option for premium amount depending on the comprehensive insurance situation. I re-state that this would come under the realm of non-disclosure to your customers.
I ask for nothing more than...
* CTP green slips to be modified immediately to state the correct information as per motor car CTP's, and
* That all motorcycle CTP green slip purchasers from IAG since this incorrect form has been in circulation be contacted offering a rebate for overpayment of their policy.
Regards,
Rob Milton

The response which looks very positive, but still waiting for action… 30/05/2005 5:22:19 pm

Dear Mr Milton
Thank you again for your reply and request.
Your email has been received by the CTP department and the underwriter manager. The underwriting manager is the only person who can attempt to make your request happen. As he is currently on vacation and returns to work on the 01/06/2005, he will discuss the situation with his staff when he returns.
My contact has emailed the manager that they feel your two requests were reasonable. We are not able to tell if and when the changes will be made as there are many system changes, at a corporate level, that will take priority over this change. So, in effect, this takes the priority decision out of CTP's hands.
However, your requests will be with the Underwriting manager for action from Wednesday 1st June 2005. Once again thank you for your email and interest in implementing changes to our CTP product.
Yours sincerely
Name withheld
Internet Support Group
IAG Insurance
Insurance Australia Group (IAG)

Take me back to RIDE RAGE,
Sydney's premier motorcycle radio program,
when too much motorcycling is barely enough!