Australian Competition and Consumer Commissioner Mr Sitesh Bhojani today launched AAMI's Compulsory Third Party Claimant Charter in Sydney.
"This innovative, simple-English charter will be of great benefit to those who have the misfortune to be involved in a car accident but who do so with an AAMI customer", Mr Bhojani said. "It sets out in a clear manner the way in which AAMI will deal with the claims, including a time frame and the risk, to AAMI, of an automatic, self-imposed penalty if these ideals are not met.
"At a time when the community's faith in business is being shaken – particularly by instances such as Enron and WorldCom overseas and HIH locally – I am pleased that AAMI is seeking to hone a competitive edge in the market through improved service which can easily be assessed.
"If the AAMI CTP Charter delivers what it promises, then AAMI by elevating the status of CTP claimants to the same level as its own customers (policy holders) will have led the way from changing the adversarial nature of the relationship often encountered between CTP insurers and claimants who, as third parties, are not the insurers' customers. That will be an example of high business ethics in action.
"The ACCC Chairman, Professor Allan Fels, launched AAMI's first customer initiative, the AAMI Customer Charter, in 1996. He noted the company's action in creating a charter which went beyond the 'feel good' factor and was, in fact, a convergence of consumer protection and competition.
"I am pleased that the company has found the original charter to be of such benefit to itself and its customers that it has proactively looked for further ways to set higher standards in the insurance industry – and increase competition.
"Whilst the ACCC does not endorse particular products, it encourages businesses to set out their customer aims, the benchmarks against which they will be judged and the strategies they will employ to ensure compliance, plainly and visibly for all.
"People making claims under this charter should be better served. They have clear time parameters for claims and assistance and an appeals avenue.
"The ACCC does not believe that consumers, particularly those involved and injured in car accidents, should be subjected to drawn-out, legalistic arguments and 'fine-print' interpretations of claims.
"I note the company's commitment to publicly report annually on compliance with the charter and also to an annual review. I look forward to similar programs being developed by other insurance companies, to the benefit of consumers and competition".