Letter to an Insurer about motor accident debt: Requesting Repayment Arrangement

Important: This letter can be used as a guide. You must insert your own details where appropriate and delete any information that is not relevant to your situation. Always date your letters. Always keep a copy of the letter you send. Get legal advice if you do not understand.

Warning: This letter is information only and should not be relied upon as legal advice.

[Insert date here]

Insurance Company

Address

Dear Sir/Madam,

Re: Accident on __ / __ / __

Your ref: _____

I refer to your letter dated __ / __ / __.

I am in financial difficulty due to: (numbered indented list)

(a) being currently unemployed or recently unemployed

(b) illness (give details)

(c) family breakdown

(d) drop in income (give details)

(e) ongoing financial difficulty due to other outstanding debts

(Choose all that apply)

I refer you to Section 3.11 of the General Insurance Code of Practice.

I wish to make a repayment arrangement of $___ per month till the debt is repaid.

If further information is required please let me know.

I assume that you will not take any further action while you are considering my request for a repayment arrangement*. If this assumption is not correct please advise me in writing immediately.

I look forward to your response in writing.

Yours faithfully,

____________________
[Full name]

[Insert your contact details]

*If the repayment arrangement you are requesting is going to be difficult to afford and/or take a long time to repay (say over 3 years) get advice before offering the repayment arrangement. If you are on a low income such as Centrelink payments, get advice before you enter into any repayment arrangement. See below under the heading “What if I cannot afford to repay the debt claimed at all?”.

*You should also consider seeing a free financial counsellor for assistance with making a repayment arrangement. Phone 1800 808 488 for a referral to your nearest free financial counsellor.