FINANCIAL SERVICES GUIDE – Updated March 2014
This Financial Services Guide (FSG) is designed to assist you in deciding whether to use any of our services and
contains important information about:
- The services we offer you
- How we and our associates are paid
- Any potential conflicts of interest we may have
- What to do in the event of a complaint
RESPONSIBILITY FOR SERVICES PROVIDED
Emjay Insurance Brokers Pty Ltd ABN 5200 2815 910 holds an Australian Financial Services Licence No. 227164 and are authorised to advise and deal in the full spectrum of general insurance products.
We are responsible for the financial services provided to you, or through you to your family members, including the distribution of this FSG.
We are required to meet high standards for staff training, organisational competence, management expertise, financial control and compliance disciplines.
WHO DO WE ACT FOR
We usually act on your behalf and in your interests in all matters. Sometimes, it may be more appropriate for us to access insurance or manage claims where we act as an agent of the insurer. If and when this situation arises we will explain and highlight this to you.
We offer a range of services to assist you to protect your assets and guard against unexpected liabilities including:
- Reviewing and advising on your insurance needs
- Identifying risk factors to avoid claims
- Seeking competitive premium quotations
- Assisting with insurance claims
HOW TO CONTACT US
You are able to contact us by phone: 02 9790 5833
Fax: 02 9790 7017 or Email: email@example.com
We can advise and arrange a broad range of insurances on your behalf including:
Home Building and Contents, Private and Commercial Motor, Farm, Business Packages, Construction, Liability, Industrial and Professional covers and others as listed in the Available Insurances List attached excluding covers defined as “People Exposures and Protection”. Should you require assistance in respect of these exposures please Phone (02) 8818 3233 Matrium Financial Services Pty Ltd (Emjay Directors are shareholders and/or Directors) and a corporate AR of Matrix Planning Solutions AFS Lic No: 228256.
To enable us to provide advice which is appropriate to your circumstances, we will need you to provide us with complete information about the risk(s) to be insured, your situation and your needs and objectives. You should also tell us about any relevant changes as they occur.
If you are unable or choose not to provide some information to us, we will be unable to comprehensively review your circumstances. As this may limit our ability to make appropriate recommendations, you will need to assess the appropriateness of our advice to your needs before acting on it.
Emjay Insurance Brokers is a shareholder of IBNA and member of the AIMS Group. This group assists our brokerage with legislative compliance, cluster group advantages with Insurers and additional markets which may not otherwise be accessible. They have exclusive arrangements with some insurers where they receive between 0.5- 1.5% commission on the premium placed by us with those insurers. These payments are used to operate IBNA.
Depending on the operating costs of IBNA/AIMS (including the costs of shareholder services provided to us and other shareholders) and the amount of total business we place with the participating insurers in any financial year, we may receive some of the commission at the end of the financial year.
VARIATIONS /MATERIAL CHANGES
You should carefully monitor and review that your insurance contract is adequate to cover your assets or business activities. Your insurer must be notified of any significant changes, which occur during the period of insurance.
If you do not, your insurances may be inadequate to fully cover you.
If you want to vary any cover, e.g. by increasing the sum insured or adding other property, please provide us with details of the changes you require and any other information you need to disclose to the insurer.
We will arrange the variation with the insurer and provide you with written confirmation.
We will assist and advise you regarding the scope of cover and communicate information to the insurer.
If a loss adjuster is appointed we shall, with your permission, pass on your contact details and co-ordinate meetings. In the case of a major loss, we can attend the initial meeting with the loss adjustor if you wish us to.
We will promptly forward to you all claims documentation, insurance company settlement cheques and other information.
If any claims are outstanding when you terminate our appointment as your insurance broker, we will:
- Provide details of the claim(s) to your new insurance broker so that they may continue to negotiate settlement
on your behalf
Under the Corporations Act 2001 (The Act) Retail Clients are provided with additional protection from other clients. The Act defines Retail Clients as:
Individuals or a manufacturing business employing less than 100 people or any other business employing less than 20 people and that are purchasing the following types of insurance covers:
Motor vehicle, home building, contents, personal and domestic, sickness/accident/travel, consumer credit and other classes as prescribed by regulations.
Some of the information in this FSG only applies to Retail Clients and it is important that you understand if you are covered by the additional protection provided.
RETAIL CLIENT ISSUES
Typically we only provide General Advice to our Retail Clients. General Advice does not take into account your particular needs and requirements and you should consider the appropriateness of this advice to your circumstances prior to acting upon it. We will provide you with a General Advice Warning in such cases. If you are a new Retail Client purchasing Personal Accident or Sickness insurance and obtain Personal Advice, that is, advice that takes into account your particular circumstances, we will give you a Statement of Advice (SOA), that sets out the advice provided and the basis on which the advice is made and our remuneration should you purchase the product.
For existing Retail Clients we may not provide an SOA but rather provide the advice to you orally. In such cases you may request us to provide you with a Record of Advice (via phone or in writing) which we will provide to you within 28 days of such request. When you ask us to recommend an insurance policy for you, we will usually only consider the policies offered by the insurers or insurance providers that we deal with regularly. In giving you advice about the costs and terms of recommended polices we have not compared those policies to other policies available, other than from those insurers we deal with regularly. If we recommend the purchase of a particular financial product, we will also give you a Product Disclosure Statement at that time, which sets out details specific to that product and the key benefits and risks in purchasing the product.
The Federal Privacy Act 2000 sets out standards for the collection and management of personal information.
With your consent, we will only use your personal information for general insurance services.
Clients not satisfied with our services should contact our Complaints Officer. We are members of the Financial Ombudsman Service (FOS), a free consumer service. Further information is available from our office, or contact FOS directly on 1300 780 808 or visit www.fos.org.au. We also follow The Insurance Brokers Code of Practice.
We hold a Professional Indemnity Policy. This policy is designed to pay claims by Third Parties (including our clients) arising out of our Professional Negligence.The policy extends to covers us for work done for us representatives and employees after they cease to work for us and satisfy the requirements for compensation arrangement under Section 912B of The Act.
To ensure that we provide you with appropriate products and services, you agree to us calling you to discuss any new products and services. If you do not wish to receive such calls please advise us and we will place you on our Do Not Call Register.
ELECTRONIC DELIVERY OF DISCLOSURE NOTICES
Please note that where possible we prefer to provide all correspondence and disclosure notices (including Financial Services Guides and Product Disclosure Statements) to you electronically, via email or links to websites etc. If you have provided your email address to us we will typically use that email address for all correspondence and disclosure notices. Should you not wish to be sent disclosure documents electronically please advise us accordingly and we will update our records.
WHOLESALE BROKER INFORMATION
In some cases we use the services of a Wholesale Broker to access products that are not available to us directly from the underwriter. You can identify where we have used a Wholesale Broker as the Invoice will show that the policy is written via another Insurance Broker. This situation usually arises where the Wholesale Broker has developed a specialised product and competitive pricing for risks that are not commonly available from most insurers. This means we are not dealing with the end insurer directly but via the Wholesale Broker. All Wholesale Brokers are required to hold an Australian Financial Services Licence and to place all client funds received into a Trust Account and are required to meet the same high standards in the delivery of their services that apply to us.Importantly all claims will be the ultimate responsibility of and paid for by the end insurer.
OUR SOURCES OF INCOME
You are entitled to know how and what we will charge for our services and what other benefits we receive.
We may be paid commission by the relevant insurers when we arrange insurance on your behalf. As a general rule, the insurer will pay us an amount based on a percentage of the premium. If we accept a commission, we may also charge you management/brokerage fee.
Alternatively, we may rebate all commissions to you and charge you a fee based upon the nature of the service we provide.
We will provide you with specific information about the basis and amount you will be charged, in relation to retail business, before or at the time we arrange your insurance.
Our charges highlight the amount of GST. Some of our charges may be tax deductible.
If we hold your money in trust pending payment to the insurer, we also receive the interest earned.
We may receive additional remuneration from insurers with whom we have profit share or volume bonus arrangements. This remuneration is payable if we meet certain agreed sales and/or profitability targets set by the insurer. If we have profit share arrangements with an insurer that apply to a product we recommend to you, we will advise you of this at the time of making any such recommendation if the amount involved is material.
If you pay by credit card we may charge you a credit card (incl. arrangement & handling) fee, which is disclosed and shown separately on our invoices, they are non refundable. This fee covers the cost of bank charges etc. associated with such facilities.
Premium funding products enable you to pay your premiums by installments. Premium funders do charge interest.We can arrange premium funding if you require it. We may receive a commission based on a percentage of the premium from the premium funder for doing so. We will tell you the basis and amount of any such payment if
you ask us.
HOW OUR REPRESENTATIVES ARE PAID
Our representatives do not receive any benefit directly from the sale of a product to you. Our representatives may receive bonuses payable based on the overall performance of our business.
If a person has referred you to us, we may pay them a part of any fees or commission received.
TERMS OF PAYMENT
We will invoice you for the premium, statutory charges (e.g. stamp duty, fire services levy, etc) and any fees we charge for arranging your insurances. You must pay us within 30 days of the date of the invoice or, as otherwise agreed.
If you do not pay the premium on time, the insurer may cancel the contract of insurance and you will not be insured. The insurer may also charge a short-term penalty premium for the time on risk.
We cannot cancel a contract of insurance without written instructions from a person who is a named insured in the contract of insurance. If there is more than one party we will follow the instructions given, even if they have been received by only one insured party. We cannot cancel any contract of insurance, which is subject to the Marine
INSURANCE ACT 1909.
If a contract of insurance is cancelled before expiry of the period of insurance, we will refund the net premium we receive from your insurer. We will not refund our fees or commission for arranging the insurance.
CONFLICTS OF INTEREST
As a business we have relationships with and receive income from various third parties as detailed in this FSG. For Retail Clients receiving Personal Advice, details of relationships that impact the advice will be included in any SOA or invoice documentation we send you. All material conflicts that impact our Advice that is not mentioned in this FSG will be advised to you on the invoices related to that advice.
DUTY OF DISCLOSURE
In order to make an informed assessment of the risk and calculate the appropriate premium, your insurer needs information about the risk you are asking it to insure.
For this reason, before you enter into a contract of insurance, you have a duty under the Insurance Contracts Act 1984 to disclose to your insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer’s decision whether to accept the risk and, if so, on what terms. The duty also applies when you renew, extend, vary or reinstate a contract of insurance.
You do not have to disclose anything that:
- Reduces the risk to be undertaken by the insurer;
- Is common knowledge;
- Your insurer knows, or in the ordinary course of its business, ought to know; or
- If the insurer has waived your obligation to disclose.
If you do not comply with your duty of disclosure, your insurer may be entitled to reduce its liability in respect of a claim or may cancel your contract of insurance. If the non-disclosure was fraudulent, the insurer may be able to avoid (or cancel) the contract of insurance from its beginning. This would have the effect that you were never insured.
One important matter to be disclosed is the history of losses suffered by the person seeking insurance or any closely associated person or entity. As you are responsible for checking that you have made complete disclosure, we suggest that you keep an up to date record of all such losses and claims.
SUMS INSURED – AVERAGE AND CO-INSURANCE
Some insurance contracts require you to bear a proportion of each loss or claim if the sum insured is inadequate to cover the amount of the loss. These provisions are called ‘average’ or ‘co-insurance’ clauses.
If you do not want to bear a proportion of any loss, when you arrange or renew your contract of insurance, you must ensure that the amount for which you insure is adequate to cover the full potential of any loss. If you insure on a new for old basis, the sum insured must be sufficient to cover the new replacement cost of the property.
INTERESTS OF OTHER PARTIES
Some insurance contracts do not cover the interest in the insured property or risk of any one other than the person named in the contract. Common examples are where property is jointly owned or subject to finance but the contract only names one owner or does not name the financier.
Please tell us about everyone who has an interest in the property insured so that we can ensure that they are noted on the contract of insurance.
WAIVER OF RIGHTS
Some insurance contracts seek to limit or exclude claims where the insured person has limited their rights to recover a loss from the person who was responsible for it, e.g. by signing an agreement which disclaims or a limits the liability of the other party.
Please tell us about any contracts of this type which you have or propose to enter into.