Claims Explained: What you NEED to know – Issue 3

Over the last couple of months, we have been pulling apart the Product Disclosure Statement and elaborating on circumstances and events for which you are NOT covered. We received great feedback from all of you on the openness and transparency of that series and they were the most popular articles in the Campfire believe it or not!

Please be aware, these articles intend to give commentary and practical examples for claims time, but should not be viewed as a substitute for appropriately looking through your PDS before deciding to take up coverage with Club 4X4.

As a result of this feedback, we will now turn our focus to dissecting the claims process and trying to give you a clearer understanding of what you can expect. Ultimately, you pay us for the product to take care of you when you need to claim right? We find most of the anxiety comes from not understanding what the claims process looks like, so hopefully we can clarify things over the next few weeks.

This week we talk about the costs of dismantling, diagnosis and reassembly and how this may apply to different claims.

The key factor to keep in mind as you read on is this – we will only pay to repair or replace your vehicle in what is classed as an “insured event”. These events can be found on page 3 of your PDS, and include collision, accident, fire, malicious damage, storm damage and more. As we’ve noted in prior articles, breakdown, manufacturers fault or wear & tear are not insured events. This is a common theme across all motor insurance policies in Australia.

The basic premise of this part of the PDS is that sometimes as part of the claims process we may require you to authorise the dismantling of your rig to make an assessment of the validity of the claim. If the claim is covered, we will take on these costs in accordance with the terms and conditions of the policy and authorise the repairs. However, if the damage is not covered under our policy, you will be responsible for the costs of dismantling (and re-assembly) and any other associated costs if the incident is deemed not valid.

A fitting example to illustrate the above is when you experience an engine failure that you think may be as a result of picking up a bad batch of fuel – a very common issue with outback travel and rusty old petrol station tanks. You should know that at Club 4X4 we will cover you for damage caused by contaminated fuel – how could we call ourselves a fair dinkum fourby insurer if we didn’t?!

The process of determining if the failure is as a result of a bad batch of fuel does take some time. Usually you would have taken your rig to a mechanic who would have made the first assessment – if you’re pretty sure it’s a bad dose of fuel you may have called us first. Obviously there will need to be some preliminary work to diagnose the issue. The costs associated with disassembly of those injectors and even your fuel pump are precisely what this clause is talking about. You need to give us authority and be prepared to wear the cost of this disassembly and diagnosis before it starts.

It may be determined that the failure was caused by something relating to a manufacturers fault or a tired fuel pump. In this instance, clearly you wouldn’t be covered as the failure wasn’t caused by an insured event; as a result, you would be responsible for the costs associated with this process. In contrast, if it is determined that it was in fact contaminated fuel that caused the failure, you will be covered for the costs associated with this process and also for the repairs to the motor.

So, there you have it, another grey area successfully made black and white! Until next time…. Happy Touring!


Click here to read the previous issue of Claims Explained.


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Comments 9

  1. I have been most impressed with your approach to 4WD insurance – mainstream insurers seem relatively uninterested in us a key sector of the insurance industry. We have our new van insured with you and will certainly consult when it comes time to renew insurance on our Pajero. Thanks for supporting us as an important sector of the travelling community.

    1. Post

      Thanks for the kind words Gordon – every other form of motoring enthusiasm has been catered too except for those of us who prefer to get our rigs dirty to see the most beautiful parts of our country.

      Thanks for entrusting us with the van, we look forward to covering the tow vehicle too!

  2. I applaud you commercial initiative to satisfy a previously ignored niche in the market. You back it up with a level of explanation and bullshit avoidance I simply do not get with home and contents, other motor vehicle, public liability, professional indemnity or ATO audit shield policies. You are not cheap, but for what you offer, you can’t be. My 04/06 4.2 TDI PatrolCoil cab roamer is protected financially, not that I want to start from scratch again!
    ONYA CLUB 4X4!!

    1. Post

      G’day Peter,

      Thanks for the kind words.

      Coming from a insurance history longer than i care to admit too has been good as it’s given me an opportunity to set a direction for Club 4X4 that truly considers what an enthusiast wants.

      We will continue to develop our products and offer a service that always embodies an honest and transparent approach. You’re right, we wont always be the cheapest, but i and we think the product stands as the most valuable and feature rich insurance product for the 4X4 enthusiast.

      Happy Touring


  3. Very scary indeed; if a particular mechanic decides its a ‘tired fuel pump’, if you’ve serviced your vehicle correctly and never been advised the fuel pump is getting ‘tired’ you should be covered, also the make take some time frame for repairs is a real worry, and may not suit traveling around Australia. I’m still with NRMA, as the above is covered and done quickly, albeit on gazette roads only, but you would be surprised how may roads are gazetted, including a lot of beaches; I was intending to go Club 4×4 but the quote I got a couple of months ago didn’t cover my listed cost spent on vehicle, was 10s of thousands short ; I intend to go through the process again, however, I have new vehicle and van and the ‘breakdown’ out clause now scares me.

    1. Hi Ken,

      Thanks for taking the time to read and respond to our article.

      When we say ‘tired fuel pump’ we are referring generally to wear and tear of the vehicle – something which is not covered under any Australia motor vehicle insurance policy. Our experience shows that contaminated fuel is something that is quite easily recognised once a sample is taken from the vehicle by the mechanic – if we identify bad fuel, you will be covered. Similar to any type of claim, you will not be paid out until the cause of the claim is identified and it is an incident that is covered under your policy. The challenge with fuel contamination and the time it takes to repair damage is that it will first go to a mechanic who will make their diagnosis. We will then assess the diagnosis and if required, obtain more information or analysis on fuel and other parts before we accept and pay for the repairs. By nature of the damage, dismantling work is required which takes longer than a simple panel based repair which can be quoted based on visual inspection.

      Furthermore, you are completely right when you talk about the definitions of gazetted vs non-gazetted roads. One of the main advantages of our product is that we do not even entertain these ambiguous definitions. Your only consideration with us is that you are allowed to be there legally; so no trespassing, no illegal acts, no closed track and no closed/flooded roads. We like to keep it simple

      Finally, with your vehicle quote, I am sorry to hear that you went elsewhere based on your accessories coverage. If you are agreeable, I would really like to take another look and ensure that we provided the best coverage and quote that we can for your circumstances. If you could, please e-mail your quote number to and we will be in touch. Value assigned to a vehicle is subjective and does consider general condition, but we have NEVER been beaten in terms of the sum insured we have provided on a quote.

      Cheers, Jackson

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