Early August, the Federal Chamber of Automotive Industries (FCAI) launched a nationwide air bag recall awareness campaign aimed at the nearly two million Australians who still need to check whether they have the faulty Takata airbag installed. Now, experts in the legal and insurance industry are weighing in about the potential insurance ramifications consumers may experience if they fail to act on the recall.

Mark O’Connor, the Director of personal legal services at Bennett and Philp Lawyers has offered a warning to those who continue to neglect the recall.

“If you are a car owner and ignore the national recall, then later on have an accident where the faulty airbag deploys, you could have a major insurance headache on top of any physical injuries caused by the airbag,” O’Connor said.

“In normal circumstances, you would make a claim against the other party’s compulsory third-party (CTP) cover. But if you have repeatedly ignored the recall and continue to drive an unsafe vehicle, then the CTP insurer of the responsible vehicle may refuse to compensate you for the injuries,” he said.

With just over 3 million vehicles across Australia affected by the Takata recall, roughly half of the affected vehicles have been checked. You can check your vehicle at www.IsMyAirbagSafe.com.au.

Source: Airbag recall could affect car insurance – www.finder.com.au

28 Aug 2018