Dangers of the open road

Disclosure that road service group NRMA Ltd is heading for a loss of $60 million this year, more than double the estimate of just a few months ago, has shocked members.

Inevitably, it must mean that membership fees will increase.

By how much has still to be announced. Last year's announced fee rise of more than 30 per cent was put on ice. When NRMA Insurance was demutualised and floated almost three years ago, members were assured in a court-approved information memorandum that service levels would be maintained and that fees would rise only in line with the consumer price index.

But some members with recent experience of service doubt this.

For a start, several branches where members could pay renewals and buy maps and accommodation guides have been closed and the latest renewal forms ask members to pay by internet, phone or to go to the post office. NRMA branches are not mentioned as places where payment is accepted.

But more worrying is what is happening to NRMA gold card and Plus members. Members who have been with NRMA for 25 years acquire gold card status and receive the same benefits free as Plus members who pay an additional $50.60 a year to receive extra services if they break down a long way from home.

This is a terrific service and includes up to $2000 worth of car hire and emergency accommodation costs for out-of-town breakdowns.

Up to $100 per day for five days is allowed for car hire as well as vehicle transport and $600 a day for accommodation if the car breaks down more than 100 kilometres from home.

But not always, as gold member Dr Terence Pierson found. His Jeep Cherokee overheated after a run from Berry to Sydney's North Shore.

He called NRMA, which came promptly, and the serviceman told Pierson that he had blown a head gasket or the radiator. He advised that the car should be driven to the nearest garage, which it was. This was on a Friday and arrangements were made to pick up the repaired car on the following Monday.

Pierson had to get home so he hired a car. But when he sought reimbursement for that cost from NRMA it was refused because NRMA said it was unable to reimburse members for such costs. Prior approval must be obtained. He was told by an NRMA operator that he should have known this rule from reading The Open Road magazine or from other documentation.

So Pierson, a member of 49 years ended up paying for his own car hire. He said it was five years since he had read The Open Road and reckoned the whole process of informing him of the correct process to obtain the benefit left a lot to be desired.

NRMA has saved itself a few hundred car-hire dollars but has a very unhappy member on its hands. An NRMA call centre operator confirmed the benefits and the need for prior approval.

Another member, Les Gilman, who has paid for Plus for 21 years, was driving from Cooma when his car hit a bump and a wheel spring went.

An NRMA service van arrived promptly and towed him but he was told that he could not have the fault fixed by NRMA because it was an accident not a breakdown, and that he could make a claim under his insurance policy.

But when Gilman, who is disabled, asked NRMA if he could have a bus ticket to get home to Nowra he was refused on the grounds that the entire event was an insurance matter.

But if he claims under his insurance policy he will pay a $400 excess and lose his no claim bonus. Gilman also isn't happy, particularly as this was the first time he has had to call on his Plus benefits since he took out his membership.

When he rang NRMA again after he had been picked up by his daughter and asked why NRMA would not even pay for his bus fare - which would have been $19 one way - he was told that the bus fare should have been paid by NRMA after all, but because it had been paid by him the NRMA was sorry but it could not reimburse him.

It seems the lesson for gold card and Plus members is that when they need the enhanced services they should phone NRMA and get approval and a confirmation reference number so that they don't get caught in the trap of paying first and not being reimbursed later. A comment was unsuccessfully sought from NRMA about these matters.