Regulator takes Youi to court
ASIC says Youi failed to complete the repairs on a damaged roof following a hailstorm in a “fair, transparent and timely manner”.
The corporate watchdog has alleged insurance brand Youi breached its duty of good faith by failing to complete repairs, and potentially exposing a pregnant customer to high levels of lead contamination.
The Australian Securities & Investments Commission lodged the proceedings in the Federal Court yesterday, alleging that Youi took nearly two years to complete repairs on a damaged roof in Broken Hill following severe hailstorm damage.
Despite the customer repeatedly notifying the company about the risk of lead contamination in the area, ASIC alleges the insurance company failed to handle the claim in a “fair, transparent and timely manner”.
“On 6 October 2017, Ms Murphy advised Youi that she was pregnant, that the (builder) ProBuild Australia had left the roof uncovered and interior exposed to lead dust, and that she was being exposed to high levels of lead,” ASIC said in a statement lodged in the Federal Court.
ASIC alleged that Youi “failed to meet the standard imposed by the duty in handling the claim as it took nearly two years to settle, with the repairs to the home finally being completed in November 2018”.
The regulator is seeking unspecified pecuniary penalties.
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