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Trucking industry welcomes add-on insurance protection

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13 August 2021

Trucking companies and their customers will keep convenient access to add-on insurance under a draft exemption from new requirements.

The Australian Trucking Association (ATA), Australian Livestock and Rural Transporters Association (ALRTA) and Australian Furniture Removers Association (AFRA) welcomed the exemption for add-on transport and delivery insurance products but have sought more clarity about incidental storage.

The Australian Government is introducing a new deferred sales model for insurance that would prohibit the sale of add-on insurance for at least four days after a customer has purchased a product or service.

“Livestock and rural carriers are often called on to move livestock or high value items at short notice, including livestock sold at auction where the owner, value and destination are not known before the sale,” ALRTA Executive Director Mathew Munro said.

“And in the removals industry, 22 per cent of customers book their move within five days of service. In some places, this could be up to 50 per cent of customers,” AFRA Executive Director Simone Hill said. 

“These moves include the industry’s most vulnerable customers, including victims of domestic violence, persons under threat of natural disaster or where the building is at risk, moves into and out of aged care and other situations,” she said. 

Acting ATA CEO Bill McKinley said the Government’s exposure draft of the exemptions from the model included an exemption for add-on transport and delivery insurance products. 

“The exposure draft addresses many of the industry’s concerns about the deferred sales model, but the exemption should in our view be amended to include incidental storage,” Mr McKinley said. 

“Incidental storage is part of the normal movement of livestock transport, including the need to unload livestock on long journeys, storage close to export vessels and abattoirs, and storage as a result of unforeseen changes to the journey or the need to change vehicle combinations,” Mr Munro said.

“In the removals industry, incidental storage is also critical,” Ms Hill said.

“It is needed in a variety of scenarios, including storage between an initial move and when goods can be delivered to a customer’s new premises, as well as incidental storage at transport depots ahead of long distance moves,” she said. 

The Australian Government is introducing the deferred sales model in response to a recommendation of the Financial Services Royal Commission. 


Read the submission