VIC Choice of repairer being declined by GIO Platinum

[Analogue Doctor]

My wife recently was stopped at a traffic light and was hit from behind by another driver.

My car, which I have owned for 23 months, since when new, was taken to a preferred panel shop for a quotation before putting in a claim for the accident. The subsequent follow ups have declined that quote as excessive. I explained to a GIO representative from the Philippines what had happened, and she did not understand the basic tenet of law when stationary cars are hit from behind, which I understand. The Assessor came to my home and inspected the wreck and has since come back to say to me that my claim to have my repairer of choice had been declined and that another local body shop, would be able to do the repair for about $10,000 cheaper, so that is where it will be going. Whilst we bought my Volkswagen Golf Highline 2018 also new (as a demonstrator) the Platinum cover was appropriate to ensure that the car was repaired to the standard in which it was built, a couple of years ago. We want it repaired to pre-accident condition.
There appears to be a culture within GIO to remove the benefits that come as a policyholder claiming for an incident, not our fault, plus for which GIO will fully recover from the Insurance Company representing the Driver at fault. The large print which one often purchases a policy based on is undermined and dismissed when it comes to a claim, even when it is at the fault of another and all details of name/address/ car registration and photos are supplied as part of the claim.
Terms such as ‘bait and switch’ come to mind, as well as ‘unconscionable conduct’, and Conspiracy to commit fraud, when a policy is paid for and the benefits not provided when sought. I doubt whether a repair costing $10,000 less will properly, safely and adequately address all of the issues in all of the chassis, subframe and panels that a repairer who is factory recommended, provides.

 

[Tim W]

Did you have a question?

 

[Analogue Doctor]

My question is: When a GIO Platinum Policy is bought and the policy issued with advertised benefits of your Choice of repairer, hire car after a not at fault accident and Lifetime replacement car ( up to 24 months), how can they decline to fix my car because they do not like my choice of repairer? GIO want to send it to their own repairer which is $10,000+ cheaper than mine and then claim the larger amount from RACV the insurer for the at fault driver. What can be done??

 

[Docupedia]

Per GIO's Product Disclosure Statement about choosing your own repairer (Page 50 - https://www.gio.com.au/documents/car-and-vehicle/car/gio-car-insurance-pds-22-3-21.pdf):

"If you choose your own repairer, which may include one of our own preferred repairers:
• after you obtain a quote from your repairer, we will arrange a time with you to drive your car (if it is safe to do so), or you must let us move it to one of our preferred repairers or another facility agreed by us;
• the repairs will be authorised if your repairer’s assessed quote meets industry standards and will result in your car being repaired safely and in a cost effective manner." [emphasis added]

GIO's website also says:
"THE CHOICE IS YOURS

Choose your repairer​

Trust is important. So if there's a local repairer you know you can count on and we approve their quote, you can stick with them. Of course, if it makes life easier, we can arrange repairs for you — so you have one less thing to worry about.
ANY REPAIRS WE AUTHORISE COME WITH OUR LIFETIME GUARANTEE. DRIVE WITH CONFIDENCE." [emphasis added]

In the website's FAQ section:
"Can I choose my own repairer?
If you prefer to, you can choose your own repairer. However, certain approval and assessment conditions must still be met." [emphasis added]

The see more link adds: "You can leave it with GIO to take care of everything when arranging for the repair of your car. However, if you prefer to, you can choose your own repairer to complete the job.
If you do this, you need to obtain a quote from your repairer. After you obtain a quote from your repairer, we will need to assess your car at one of our preferred repairers. The repairs will be authorised if your repairer’s assessed quote meets industry standards and will result in your car being repaired safely and in a cost effective manner.
Our lifetime repair guarantee applies even if you choose your own repairer, as long as we authorise the repairs." [emphasis added]

I'd say they're pretty clear about there being conditions on the choice of repairer, and about stating clearly that there are conditions.

 

[Tim W]

We want it repaired to pre-accident condition.

As does everyone.
That's what "repair" is.
In any event, are you someone who is yourself technically qualified to tell the difference?

My question is: When a GIO Platinum Policy is bought and the policy issued with advertised benefits of your Choice of repairer, hire car after a not at fault accident and Lifetime replacement car ( up to 24 months), how can they decline to fix my car because they do not like my choice of repairer?

What @Docupedia said.

...and then claim the larger amount from RACV the insurer for the at fault driver.

What is your evidence for this statement? You can be pretty confident that neither insurer will allow themselves to be taken for a ride on the costs.
In any event, loss adjustment between insurers is not something that matters to an insured.

What can be done??

Start by making an appointment with a manager-level human being in Australia.
Someone who has some say-so to effect the change you seek.

 

[Analogue Doctor]

Good Morning,

Today marks eight weeks since our car was involved in the rear end collision and the quotation was received by GIO for its repair.

I have engaged external help and they have contributed to assisting the process of remediation. These costs will be added to the cost of the claim.
We have also sent the quotation to an external Motor Body engineer for their legal opinion, to which cost will also be added to the claim.
As is being currently experienced in the building industry with a lack of some raw materials, the cost of those raw materials has risen substantially, which has caused price hikes.
The term your assessor used as excessive ought to be taken in context. Any quote larger than another could be considered so. Items from a Department store are priced in excess of those similar items in a supermarket or less quality store.
The price that, for example, Women spend on clothing, hair and beauty, shoes are excessive compared to the average that men spend on similar items. The simple fact that my vehicle is only two years old, engineered and made in Germany in comparison to a similar sized vehicle from manufacturers from KIA or Hyundai or similar, the costs are going to appear larger than the lesser product. This is not excessive, but more costly to properly repair to a pre-accident condition by an authorised motor body repairer. I chose and paid for a GIO Platinum cover to provide the best opportunity to have my car repaired or replaced as it is not an average costing four door hatch.

Through a number of text messages to Mr Hamakiotis, GIO Claim Manager, we have offered the car for a second assessment by a GIO repairer, to fully comply with GIO policy. The photos of the messages were enclosed allowing GIO to send an another Assessor to see the car. We have a photo of that message that will be added to the final arguments we launch, along with these communications to GIO. The suggestion that the car needed to be removed from the property to be externally assessed is not valid as the original assessment was done on the side of the road. Additionally, Nino, a GIO assessor came to our home and further assessed the car here, plus another assessment has been done here, in the course of business as a car crash assessor, goes to cars that are in towing yards on a regular basis. This will also be tendered and any such costs will be recovered.
All this evidence is mounting towards a larger claim that currently exists.

Please also take into account, which seems to be not given adequate weight in your decision, that Melbourne is in Lockdown number six and that over 200 days have been spent under Public Health Orders restrictions, which has meant an inability to freely leave our homes other than for five, now six reasons, which has had a severe negative impact on all of our mental health conditions, plus exponentially increased our stress and anxiety. This will be highlighted in and by our visits to our respective Doctors, in a future hearing whether it be VCAT (Victorian Civil and Administrative Tribunal), Melbourne Magistrates Court (our preferred option) plus the Victorian Financial Ombudsman and the Insurance equivalents (ICA and AFCA, to which you are familiar). We are building our case as time goes on.

We have also written, because we are somewhat housebound, to A Current Affair, The AGE and other Media organisations to provide a story of public interest of repression by a Financial Corporate during a Public Health Orders lockdown.
Given the amount of financial distress caused by unemployment of hospitality workers and others, we have been advised that they are experiencing delays in processing of both such stories and legal applications and we should sit tight until ours is processed. We also have had a major earthquake yesterday to further impair our now somewhat restrictive lives.

At this, our eight week anniversary of the accident, I implored GIO to re-assess the hasty decision to hold up the repair of our vehicle by our chosen repairer. Our repairer had previously noted that the repair will take about four weeks and even if they started now it would be week twelve before our car was returned to us repaired properly with new, genuine VW parts.