Many benefits make up the mutual difference

Many benefits make up the mutual difference


Two women in workshop

More than 40% of Capricorn's membership are now with Capricorn Mutual. The more Members the mutual has, the stronger it gets and the more benefits there will be to share.

Every year, thousands of complaints are received about insurance companies across Australia and New Zealand.
Data from the Australian Financial Complaints Authority for the financial year 2019/20 shows 24% of complaints received were about general insurance. In New Zealand, the figure is worse, with general insurance responsible for 64% of all complaints to the Insurance and Financial Services Ombudsman.

That’s a lot of unhappy people.

Traditional insurance companies are focused on making profits. That creates a great incentive to deny claims and reduce payout amounts, and it’s likely to lead to a lot of complaints from customers about how claims have been handled and the quality of service they’ve received.

With a mutual, the profit incentive is removed. That’s because there are no third-party shareholders: the only people who can protect their assets in a mutual are the mutual members themselves. Or, to put it another way, the members own the mutual.

That’s why so many automotive business owners have made the switch from traditional insurance to mutual protection with Capricorn Mutual. It’s available exclusively to Capricorn Members through Capricorn Risk Services and was created precisely to ensure a better deal for Members.

Two men in workshop

Capricorn Mutual has paid out more than $200 million in claims since it was established and, unlike traditional insurers, regularly exercises its discretion in favour of paying out claims that are technically outside the scope of the protection a Member has taken out.

Capricorn Risk Services and Capricorn Mutual are regulated by the Australian Investments and Securities Commission. By law any assets and profits of the mutual can only be used to support and benefit members, so any profits are reinvested to benefit mutual Members.

There are other advantages, too. Firstly, Capricorn Mutual offers specialist protection tailored precisely to the needs of the automotive industry. Secondly, in Australia stamp duty and the fire services levy are not charged on mutual protections. Thirdly, Capricorn Mutual doesn’t have to pay income tax on Member contributions, which further lowers costs. And lastly, Members can earn rewards points on protections and can pay instalments at no extra cost.

Ultimately, the more Members the mutual has, the stronger it gets and the more benefits there will be to share. If you’d like to see why you’re better off with Capricorn Risk Services, talk to your Risk Account Manager today.

AU: Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).

NZ: Products sold through Capricorn Risk Services Pty Ltd (NZBN 9429041139813) include discretionary risk protection and general insurance products. Discretionary risk protection is issued out of Australia by Capricorn Mutual Ltd. Before deciding to acquire discretionary risk protection you should consider the Product Disclosure Statement to see if it is appropriate for you. This can be obtained from Capricorn Risk Services Pty Ltd by phoning 0800 555 303 via email info@capricornrisk.com or by visiting website capricornrisk.com. General insurance products are issued by a range of insurers and are available through Capricorn Risk Services Pty Ltd as a member broker of PSC Connect NZ Limited. Capricorn Risk Services Pty Ltd is a registered financial services provider (390446) and a corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038).

This article was published 18/06/2021 and the content is current as at the date of publication.