Increase of EDR monetary compensation limit

The Credit and Investments Ombudsman (CIO), previously known as COSL, has announced that the monetary compensation limit applying to each claim for complaints received from 1 January 2015 will be $309,000.

A complaint may contain more than one claim, with each claim being separately subject to the monetary compensation limit. In other words, separate claims by the same complainant will not be aggregated for the purpose of determining a maximum claim.

For disputes lodged with the Financial Ombudsman Service on or after 1 January 2015 the compensation cap is also $309,000 except for:

  • Income stream risk insurance policy or advice claim: The cap for a claim on an insurance policy dealing with income stream risk or advice about such a policy is $8,300 per month. If the claim is in excess of this monthly limit, the monthly cap will apply unless the total amount payable under the policy can be calculated with certainty by reference to the expiry date of the policy and/or age of the insured and that total amount is less than $309,000. If the two exceptions above apply, then the cap will be $309,000.
  • General insurance third party motor vehicle claim: The cap for a claim by a third party on a General Insurance Policy providing cover for property loss or damage caused by or resulting from the impact of a motor vehicle is $5,000.
  • Claim against General Insurance Broker: The cap for a claim against a General Insurance Broker is $150,000, except where the claim solely concerns its conduct in relation to a Life Insurance Policy – in which case it will be $8,300 per month in respect of an income stream policy, or $309,000 otherwise.
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