Wednesday, July 3, 2013

AAMI provides parital home insurance refund to Templestowe resident

I received a letter yesterday from AAMI with a cheque attached. They'd treated Templestowe as being covered by the CFA whereas Templestowe is covered by the MFB and thus appear to have overcharged. The refund was $84.42 which represents roughly a 35% refund of the Fire Levy charged including GST and Stamp Duty.

It is hard to say if this is a result of the new Fire Services Levy starting on the 1st of July. I (and I'm sure others also) would have compared what AAMI had charged and the new Fire Levy. At the rate AAMI had charged they would have been charging nearly twice the new levy and that simply wouldn't have appeared to be right. With the adjusted charge the new Fire Levy is a few dollars more.

I decided to write a calculator to make it easier to determine the new Fire Services Levy which is available at That made it easier to compare the old and the new levy.

I think people will need to be very careful with home insurance renewals. The levy is being removed from home insurance and I can't help but wonder if some insurance companies will not reduce their premiums by the full amount. This is a good time for people to shop around and make sure they're getting the full saving from the Fire Services Levy being removed from their home insurance. Off course it isn't gone, just moved across to being part of our municipal rates.

It is also a reminder of the need to check premiums from different providers. In this case there was $84 being paid to AAMI that really didn't represent an insurance premium and other companies should have been able to provide the same service at a lower price. I do have to wonder how long this overcharging had been going on for.

Kelvin Eldridge
Online Connections
Call 0415 910 703 for computer support.
Servicing Templestowe, Doncaster, Eltham and the surrounding area.

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