Lack of Independence

We receive commissions from the underwriters that we place your insurance with and we retain that commission to operate our business.

The Purpose of this Guide

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

We hold an Australian Financial Services Licence 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.

Our services

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 and seeking competitive premium quotations.

How to contact us

You are able to contact us by phone, in writing, email or in person.

Our products

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.

Retail clients

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 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 insurance providers 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.

Personal information

The Privacy Act 1988 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. Our Privacy Policy Statement is available free of charge upon request.

Complaints

Clients not satisfied with our services should contact our Complaints Officer. We are members of the Australian Financial Complaints Authority (AFCA), a free consumer service. Further information is available from our office, or contact AFCA directly on 1800 931 678 or visit www.afca.org.au. We also follow The Insurance Brokers Code of Practice.

Compensation

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 by representatives/employees after they cease to work for us and satisfies the requirements for compensation arrangements under Section 912B of The Act.

Contact agreement

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 notes

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 attachments or email links to documents/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 and we will update our records accordingly.

Our sources of income

When placing your insurance we usually receive a commission from the insurer. The amount varies between 0% and 27.5% of the base premium you pay. Where a policy is cancelled before the period of insurance has ended we will usually retain the commission on any return premium involved.

If you are a Retail Client and we give you Personal Advice, commission amounts will be provided in any SOA or on any relevant invoices where an SOA is not provided. When we give you General Advice, full commission information (including dollar amounts) will be provided on request.

If you are a Retail Client, the commission amounts we receive from underwriters for all transactions will either be disclosed on your invoices or on your Terms of Engagement that accompany the invoices. In addition, when we give you personal advice, commission amounts will be provided in any SOA we are required to provide you.

We have a set of standard non refundable Broker Fees that we charge you for services such as:

• Market research on products available.

• Assessing the claims service of insurers.

• Sourcing alternative quotations and coverage.

• Risk analysis and portfolio co-ordination.

All fees payable for our services will be advised to you at the time of providing the advice or service.

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.

We retain the interest on premiums paid by you that are held in our trust account before paying the insurer.

If you pay by credit card we may charge a credit card fee, which is shown separately on our invoices and is non refundable. This fee covers the cost of bank charges etc. associated with such facilities.

Premium funding products enable you to pay your Invoice by installments. Premium funders do charge interest. We can arrange premium funding if you require it. We will normally receive a commission of between 1% and 4% of the amount funded from the Premium Funder for arranging the funding. We will tell you the basis and amount of any such payment if you ask us.

Network Group Membership

We are a Steadfast Group Limited (Steadfast) Network Broker and have access to member services including model operating and compliance tools, procedures, manuals and training, legal, technical, HR, contractual liability advice and assistance, group insurance arrangements, product comparison and placement support, claims support, group purchasing arrangements and broker support services.

These services are either funded by Steadfast, subsidised by Steadfast or available exclusively to Steadfast Network Brokers for a fee.

Steadfast has arrangements with some insurers and premium funders (Partners) under which the Partners pay Steadfast a fee to access strategic and technological support and the Steadfast Broker Network.

Steadfast is also a shareholder of some Partners.

You can obtain a copy of Steadfast’s FSG at www.steadfast.com.au

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. If you are a Retail Client and receive Personal Advice full remuneration details will be disclosed in the SOA or invoices related to the advice.

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 impacts our advice, that are not mentioned in this FSG, will be advised to you on the invoices related to that advice. All material conflicts that may impact our ability to act in your best interests will be disclosed to you and we will only continue to act with your consent.

GI Insurance Brokers Pty Ltd

Australian Financial Services Licence No: 521808
ACN: 638 733 070
Visit us: 192 Charles Street
Postal Address: PO Box 150, Legana TAS 7277
Phone: (03) 6364 3824
Email: tina.goninon@giib.com.au

This FSG applies from 18/06/2024 | V5

Broking Terms of Engagement

Background

A.          The Broker is an insurance broker.

B.          The Client agrees to appoint the Broker to be its insurance broker and/or advisor and be responsible for the handling, administering and coordinating of its insurance program and any other general insurance policies that the Client has asked the Broker to manage.

C.          The Clients engages the Broker on the terms as set out in this Agreement.

Operative Provisions

1           Interpretation and Definitions

(a)         A reference to:

(i)          One gender includes the others;

(ii)         The singular includes the plural, and the plural includes the singular;

(iii)        A person includes a body corporate;

(iv)        A party includes the party’s executors, administrators, successors and permitted assigns;

(v)         A statute, regulation or provision of a statute or regulation (Statutory Provision) includes:

A.          The Statutory Provision as amended or re-enacted from time to time;

B.          A statute, regulation or provision enacted in replacement of that Statutory Provision; and

C.          Another regulation or other statutory instrument made or issued under that Statutory Provision;

(vi)        “Including” and similar expressions are not words of limitation;

(vii)       A reference to an agreement or document (including, without limitation, a reference to this Agreement) is to this agreement or document as amended, novated or replaced;

(viii)      Where a word or expression is given a particular meaning, other parts of speech and grammatical forms of that word or expression have a corresponding meaning;

(ix)        Headings and any table of contents or index are for convenience only and do not form part of this Agreement or affect its interpretation; and

(x)         A provision of this Agreement must not be construed to the disadvantage of a party merely because that party was responsible for the preparation of this Agreement or the inclusion of the provision in this Agreement.

2           Scope of Work

(a)         The Client engages and appoints the Broker to provide insurance services arising from and incidental to the signed Insurance Checklist annexed and marked with the letter “A” including:-

(i)          The identification, evaluation and monitoring of the Client’s insurable risk exposures in consultation with the Client and the provision of advice in respect of the most effective insurance arrangements to provide adequate cover for the Client’s identified insurable risks;

(ii)         Using reasonable endeavours to submit renewal quotations not later than fourteen (14) days prior to policy expiry with key details of coverage, exclusions, insurers, premium, etc. Quotations from alternative insurers and/or on an alternative basis can be provided where agreed by the Client in advance;

(iii)        Reviewing the service standards and operational stability of all insurers used on the Client’s insurance program prior to their use, subject to the understanding by the Client that the Broker does not guarantee the financial position and solvency of any insurers utilised. The Broker will advise the Client of any reservations about the engagement of any insurer in this respect and obtain the Client’s specific instructions as appropriate;

(iv)        Designing, placing, and renewing the Client’s insurance program in accordance with  their instructions;

(v)         Arranging meetings as requested or required with the insurers and other parties (e.g. loss adjusters) involved on the Client’s insurance program;

(vi)        If a contract of insurance falls due and the Broker has been unable to contact the Client after making reasonable enquires, the Client irrevocably authorises the Broker to arrange continuity of cover. If the Client does not require the cover, the Client undertakes to tell the Broker as soon as possible. A short-term premium will apply and will be recoverable by the Broker as a debt due and payable by the Client. The Client will advise the Broker if it does not wish the Broker to provide this service.

(b)         The Client acknowledges that the Insurance Checklist sets out all of its potential insurance risks relevant to its business known to it at the time of this Agreement and that the scope of the works to be performed by the Broker are limited to the insurance policies and risks arising from those listed in the attached Insurance Checklist.

(c)         The person with overall responsibility for the services provided under this Agreement will be Dane Goninon. They hold the following qualifications and experiences as an insurance broker:

(i)          Diploma Financial Services – General Insurance Broking – 21 years of experience.

(d)        Dane Goninon will be assisted from time to time by other staff and specialists employed by the Broker.

3           Acceptance & Term

(a)         The Client accepts the terms of this Agreement by confirming the same orally, in writing, or by continuing to instruct the Broker in relation to its matter.

(b)         Unless otherwise agreed in writing, this Agreement commences from the day the Client engages the Broker and continues until either party provides twenty-eight (28) days’ written notice of termination (expiring after any initial term agreed), or otherwise terminates the Agreement in accordance with the terms of the same.

(c)         Unless otherwise agreed in writing, all outstanding claims will be passed on to the Client for future handling from the date of termination.

4           Remuneration

(a)         In consideration for the services outlined in this Agreement, the Client agrees that the Broker will receive remuneration on a commission and/or fee for service basis. All fees charged are non-refundable. In the event of a cancellation of a policy prior to the end of the period of insurance, the Broker will retain the commission on any Return Premium applicable.

(b)         It is difficult to indicate, at this stage, the amount of commission that may be payable to the Broker. The commission payable by the Client will vary depending on the specific insurance product applicable and the underwriter providing the policy. Depending on these factors, the Broker will ordinarily be entitled to commission ranging from 0 – 27.5% of the Client’s total premiums payable. Commission will be payable at the time of acceptance and/or renewal of a policy on a transactional basis as and when required. The Broker will provide, if possible, an estimate to the Client of likely commission as soon as reasonably practicable and, subsequently, will confirm the actual amount of commission as soon as reasonably practicable.

(c)         In the alternative to commission, the Broker reserves its right to charge a fee for service. A fee for service will be rendered by the Broker to the Client at the time of acceptance or renewal of a policy in lieu of its entitlement to Commission. The fee for service will be calculated with reference to the commission payable to the Broker concerning the relevant transaction, and will not exceed the amount of commission payable to the Broker. The Broker will provide the Client with a breakdown of how the fee for service is calculated as soon as reasonably practicable.

(d)        In addition to commission or a fee for service, the Broker will also charge the Client with a broker fee from time to time, as and when necessary. Broker fees are subject to change and will be rendered in accordance with the Broker’s broker fee structures. Whilst not a quote, the Broker estimates that the following broker fees may be applicable:

(i)          Cancellations                                                                          $20.00

(ii)         Endorsements                                                                        $20.00

(iii)        Commercial policies                                                                $150.00 - $300.00

(iv)        Domestic policies                                                                   $50.00 - $100.00

(e)         From time to time, the Broker may also arrange premium funding for the Client. If that occurs, the Broker will receive a commission of between 0 – 2% of the total premium funding the Client receives (inclusive of interest).

(f)          From time to time, the Broker may also retain interest on premiums paid by the Client that are held in the Broker’s trust account prior to paying to the insurers.

(g)        The Broker’s hourly rates are exclusive of GST and are general tax deductible. The Client must pay all GST, without deduction or set off in addition to all other money payable by the Client to the Broker or any third party.

(h)        Remuneration payable for Risk Management and other services which fall outside the scope of  this Agreement will be the subject of separate negotiations between the Broker and the Client.

5           Invoicing

(a)         The Broker will issue to the Client invoices for all placements, transactions, or renewal premiums and mid-term alterations as soon as possible prior to renewal or after the effective date of the transaction. The Broker will then pass on to the insurers the premium recovered from you, less any commission due to the Broker or its employees, agents or representatives together with any interest on that premium.

(b)         The Client agrees to pay all invoices for all premiums, duties, fees, etc. within twenty-one (21) days upon receipt of the invoice.

6           The Client’s Obligations

(a)         The Client agrees to provide accurate, complete and timely information as and when requested by the Broker to enable it to perform the services referred to in this Agreement and to make a fair presentation of the risk to your insurers.

(b)         The Client agrees to comply with its legal duty to disclose all material facts when entering into a contract of insurance. The Client accepts full responsibility for the accuracy of the information provided and acknowledges that the Broker will rely on the accuracy and completeness of the information the Client provides in providing the services referred to in this Agreement and arranging the Client’s insurances.

(c)         The Client acknowledges that failure to provide all necessary information to an insurer, whether intentional or in error, could result in the impairment or voiding of coverage.

(d)        The Client agrees to carefully review all documents given to it by the Broker (including policies and endorsements) containing terms of cover (including applicable limits, sub-limits and deductibles and the Client’s obligations) to ensure that the cover suits the Client’s needs. Failure to do this may result in uninsured losses.

(e)         The Client will advise the Broker immediately if it notices any mistakes of fact or believes that the contents do not address the Client’s needs.

(f)          Should a circumstance, event or loss occur which could result in the Client making a claim, the Client will advise the Broker of the details as soon as possible and within the time required under the Client’s contract of insurance. Failure to advise an insurer of such a circumstance, event or loss could prejudice the Client’s rights under an insurance contract.

(g)        The Client acknowledges that all decisions regarding the amount, type or terms of coverage shall be your sole responsibility. While the Broker may provide advice and recommendations, the Client must decide the specific coverage that is appropriate for its particular circumstances and financial position.

7           The Broker’s Obligations

(a)         The Broker acknowledges that it is bound by, and will comply with, the Insurance Brokers Code of Conduct (the Code) during the term of this Agreement. The Broker will provide a copy of the Code to the Client upon its request.

(b)         The Broker will take all reasonable steps to ensure that it provides clear information to the Client so that it understands the services it will receive.

(c)         The Broker will not act for an insurer or another party where doing so would be contrary to the Client’s best interests. If the Broker identifies a conflict of interest which can be managed, the Broker will advise the Client in a timely manner upon identifying such a conflict regarding what steps will be taken to manage the conflict of interest in the Client’s best interests and the Broker may only continue to act on behalf of the Client with their consent. If, for whatever reason, the Broker can no longer advise or act in the Client’s best interests, the Broker will advise the client immediately upon identifying the relevant conflict. 

(d)        During the term of this Agreement and whilst acting on the Client’s behalf the Broker will not receive any contingent remuneration (including volume-based commissions or profit-sharing arrangements or preferential remuneration) unless the Broker is acting on behalf of an insurer or in relation to Covered Services (as defined by the Code) effected under a binder arrangement.

(e)         Amongst other things, the Broker will use its best endeavours to arrange the following:

(i)          Annual review meetings and such other meetings as required during the year with the Client;

(ii)         Submission of a Renewal Questionnaire to the Client to obtain the necessary underwriting information to be returned by the Client within thirty (30) days of receipt;

(iii)        Respond to general enquiries as they arise from the Client as soon as reasonably possible;

(iv)        Changeover of relevant policies in the case of new business acquisitions and arranging for the finalisation of policies in the event of a business divestment;

(v)         Claims Status Reports to coincide with meetings as outlined above;

(vi)        Establish activity listings in a format suitable to the Client. This will be subject to appropriate information being supplied by the Client which will be required to enable the Broker to maintain such activity listing; and

(vii)       Annual Report to be provided to the Client each year.

8           Excluded Services

(a)         From time to time, the Broker may enter into arrangements with insurers and others to provide services and support in order to promote the efficient operation of the insurance market (Excluded Services).

(b)         Excluded Services means services provided to an insurer or another organisation and paid for by the insurer or the other organisation including:

(i)          access to broker-owned and operated technology;

(ii)         access to broker-owned intellectual property, including broker insurance wordings;

(iii)        insurer consulting services;

(iv)        data and analytic services;

(v)         risk control and engineering services;

(vi)        product development services; and

(vii)       binder and cover holder activities outside arranging or advising on general insurance products for insured clients.

(c)         Arrangements for the provision of Excluded Services are commercial in nature, and the Broker’s obligations relating to disclosing what it earns does not apply to those arrangements.

9           Claims Management

(a)         The Client will familiarise itself with the policy conditions arranged by the Broker relating to the Client’s obligations regarding claims notification. Generally speaking, the claims management process will include:

(i)          Notification of claims to insurers in accordance with policy requirements;

(ii)         The Broker advising the Client of the claims processes and documentation required to ensure the Client’s claims are settled promptly and efficiently;

(iii)        The Broker assisting with any negotiations that may be required with insurers or their loss adjusters;

(iv)        The Broker maintaining close liaison with insurers and loss adjusters to ensure that all claims are processed as effectively as possible;

(v)         The Broker promptly informing the Client of the appointment of any loss adjuster, lawyer or any specialist appointed by the insurer;

(vi)        The collecting or facilitating of all claims settlements to the Client’s required bank accounts; and

(vii)       The Broker will administer claims notified by the Client during this Agreement until the claim is finalised. In the event of termination of this Agreement, the Broker will no longer provide a claims service and hand over all claim files to the party nominated by the Client within a reasonable timeframe.

10         Limitation on Liability

(a)         The Broker will provide the services subject to this Agreement with reasonable care and skill. All representations (whether express or implied) and all other implied conditions, warranties and terms as to the provision of the services are otherwise excluded to the extent permitted by law.

(b)         Whilst the Broker may provide to the Client information concerning its insurers’ financial standing from time to time, the Broker is not the insurer of any risk and it cannot guarantee the availability of insurance for the Client’s particular risks. The Broker does not in any way guarantee the solvency of insurers.

(c)         To the extent permitted by law, the Broker and its employees, agents or Representatives will not be responsible or liable for:

(i)          Any consequential, incidental, indirect or special damage or loss of any kind, including loss of profits, loss of revenues, loss of anticipated savings, loss of data, loss of reputation, loss of goodwill, loss of opportunities and loss of business;

(ii)         The supply by the Client or others of incorrect or incomplete information (including information that the Broker may use to calculate the premiums and other charges relevant to the Client’s insurance) or the failure by the Client or others to supply information within the time periods reasonably requested by the Broker from time to time;

(iii)        The default, negligence, error, omission or lack of care on the part of any person other than the Broker;

(iv)        Any variation between a certificate or summary of insurance and the actual terms of cover or any omission from or misstatement in a certificate or summary of insurance; or

(v)         Any failure or delay on the Broker’s part where it is due to causes outside its reasonable control including, but not limited to, any act of God or nature, war or terrorism, riot, civil disturbance, national emergency, epidemic, action or inaction of a government or regulatory authority and strike or other industrial action.

(d)        For the purpose of this Agreement, the term “Representatives” has the same definition as the meaning of “Affiliates” within the Corporations Act 2001 (Cth), including the employees or agents of the Broker’s Affiliates.

11         Termination

(a)         The Broker may terminate this Agreement if:-

(i)          The Client does not pay an invoice within the timeframe required under this Agreement;

(ii)         The Client fails to give adequate or timely instructions;

(iii)        It becomes apparent to either party that the Client has lost confidence in the Broker.

(b)         Upon termination of this Agreement, the Broker will retain all commissions earned on premiums paid by the Client and all brokerage fees paid by the Client to the date of the termination.

12         Confidentiality

(a)         The Broker will keep all confidential information received from the Client confidential and use it solely for the purpose of performing the services pursuant to this Agreement.

(b)         The Broker’s confidentiality obligation does not apply where:

(i)          The Client has given written permission otherwise;

(ii)         Where disclosure is required to satisfy legal obligations or regulatory requirements;

(iii)        Where disclosure is reasonably required to carry out the services of this Agreement (for example, by providing information to current or prospective insurers);

(iv)        Where such information is in the public domain; or

(v)         Where the information is rightfully in our possession other than as a result of a breach of any obligation of confidentiality.

13         Complaints

(a)         Any complaints raised by the Client concerning the provision of the Broker’s services under this Agreement will be handled in accordance with clause 9 of the Code.

(b)         If the client is unhappy about the provision of the Broker’s services under this Agreement or interactions and dealings with the Broker, the Client should make a complaint directly to the Broker at first instance.

14         Intellectual Property

(a)         The Broker retains title, copyright, patents and all other intellectual property rights to its knowledge, ideas, concepts, programs, documentation, models, studies and methodologies used, acquired or developed in servicing the Client under this Agreement.

(b)         The Client acknowledge that the Broker is in the business of providing similar services to other clients and agrees to the Broker utilising the same intellectual property and rights in servicing other clients as long as the Broker keeps the Client’s confidential information confidential in accordance with this Agreement.

(c)         Unless otherwise agreed in writing, the Broker retains copyright in all material provided to the Client or otherwise generated in the course of carrying out the services under this Agreement.

15         File Retention

(a)         The Client may elect to leave its file with the Broker upon completion of its matter.

(b)         The Client authorises the Broker to scan any and all of your documents related to its matter, including by outsourcing the scanning of your documents.

(c)         The Client authorises the Broker to store its documents both on and off site. The Client acknowledges that there is no requirement for the Broker to retain the Client’s documents for a period of seven (7) years from completion of the matter.

(d)        The Client authorise the Broker to destroy its documents, whether in paper or electronic form, at a date and time to be determined by the Broker.

16         Notices

   (a)        All notices served under this Agreement will be directed to the Client at its current business address at the time of the notice.