Insurance coverage with contaminated fuel

It is tricky. I left QBE because they told me they do not provide that cover, yet they told someone else they do? I went with AAMI and got it in writing that they do provide the cover. Hopefully I will never have to make such a claim. Kevin

I appreciate that is what they have told you but you need to have a look at the PDS. If it does not specifically mention that the policy excludes contaminated fuel then they must cover it. It is up to them to tell you via the PDS what they will not cover.

Most insurance companies now do cover it so if the RACV doesn't, you need to look if you should have another insurance company.

Garry

I have the Tuck Truck insured with TCIS brokers (recently merged with OAMPS). They offer 4x4 specific insurance and they do cover damage caused by dirty fuel...PROVIDING;

You stop at the instant the problem becomes apparent.

If, after discovering the issue, you elect to drive on, they will void the cover. Probably not the most convenient after getting a dirty drum load at well 23 but all the more reason to fit a secondary filter PRE the factory fitted offering and always fill from cans or drums (or suspect bowsers) using a suitable screening device like a Mr Funnel.

Cheers Mick

That's an interesting comment that AAMI will cover fuel contamination. I had a quick read of their PDS and there are several specific exclusions that say they don't. A legal tussle may be likely?

Exclusions noted.
Viz " Costs related to your car breaking down
(e.g. mechanical or electrical failure)."

" any actual or threatened biological, bacterial, viral, germ, chemical or poisonous substance, pollutant
or contaminant"

Regards
Brenton

The key to this question rests with the wording of the operative clause which describes the "Cover". E.G.
We will cover loss or damage to your vehicle
caused by any of the following incidents:
an accident including a collision
flood
fire
malicious act
storm
theft or attempted theft.
We will repair replace etc .......
This wording is covering specific events and clearing contaminated fuel is not included.

Alternative wording:-

If your car suffers accidental loss, damage or theft anywhere in Australia, we will choose to do one of the following: repair replace etc.....

I would contend that this operative clause clearly states accidental damage is covered and I believe it would be untenable to suggest that such damage was not accidental. Who in their right mind would put faulty/contaminated fuel in their vehicle.

Whilst some may argue the General Exclusion :-

Loss of use, depreciation, wear, tear, rust or corrosion.
Mechanical, structural, electrical or electronic breakdown, failure or malfunction.

excludes such damage, the proximate cause of the damage is the accidental introduction of the faulty/contaminated fuel. For had it not been for the introduction of such fuel the damage would not have occurred. Therefore the exclusion does not apply.

It is point to argue with your insurer if the situation arises and this style of wording is used.

Cheers
Racey

Let me be the devil's advocate.
I thought I paid vehicle insurance in case I pranged it or drowned it or whatever. I'd hate to see my insurance company paying out big claims for crappy fuel systems - it would put my premiums up heaps, and I might be paying for other's stupidity.

If your pump or engine is shot by adding petrol to a diesel vehicle....sure that's an accident....but not in the same sense that a prang is an accident. More an act of stupidity for which I think the owner is responsible and needs to take it on the chin and cough up the money themselves.

If your pump/injectors are shot by water in the diesel - the Fuel company or servo might take the blame for that. So how do you know which of the recent servos was at fault? Might be hard to prove.

As for the random "must be fuel contamination" that the "service department" claim is the cause of the failed injectors, that commonly fail on certain common rail diesels?? Again IMO, this is the dealers/manufacturers attempting to squirm out of a warranty claim.

As for me, I'll drive the vehicle where and when I like. I take a lot of measures tio make sure that only clean diesel reaches the pump. I'll service it as I see fit, and if the injectors stuff up, it will either be a warranty claim or I'll take it on the chin. Can't see why insurance should pay.