Husband loses insurance dispute over wife's death

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Legislation that started in March 2019 would have ceased the woman's default cover, unless she responded to a notice saying she wanted it to continue. The trustee said it complied with legislation by emailing the notice, but the complainant said she never received it.

The life insurance policy ceased on July 1 2019. On March 5 2020, the member asked for a replacement of the policy and was covered again. The member died on February 12 2021, and the complainant made a claim for the death benefit.

But AIA declined to pay, after determining that she had died from a preexisting medical condition. The complainant argued that he should be paid the death benefit but the trustee rejected the claim.

The complainant stated that it was never their intention to cancel the death benefit and in fact were relying on the benefit payout as part of her final estate for the family.

He went on to say that the trustee had failed to appropriately notify them that the death benefit would be cancelled.

He said that they had not been initially made aware that the death benefit had ceased. "When we did become aware, via online account, that the death benefit had ceased, we contacted [the trustee] to have it reinstated immediately.” he said.

He said the trustee also did not mention that the new cover excludes pre-existing conditions.

However, the Australian Financial Complaints Authority said it was satisfied and that new cover was explained in the Product Disclosure Statement. The decision to decline the claim is fair and reasonable, it added.

Published:Tuesday, 17th May 2022
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Envest Group Unveils TLI Underwriting for Heavy Motor Fleets

31 Dec 2025: Paige Estritori

Envest Group, a prominent player in Australia's insurance sector, has announced the launch of TLI Underwriting, a new agency dedicated to providing specialised insurance solutions for heavy motor fleet operators. This strategic move aims to address the unique challenges faced by larger transport businesses in Australia. - read more

IAG Boosts Profit Forecast Post-RACQ Insurance Acquisition

31 Dec 2025: Paige Estritori

Insurance Australia Group (IAG) has announced an upward revision of its annual profit forecast, attributing the increase to the recent acquisition of RACQ Insurance. The company now anticipates a reported insurance profit ranging between $1.55 billion and $1.75 billion for the financial year, marking a $100 million enhancement from the previous estimate. - read more

NTI Report Highlights Human Error as Leading Cause of Major Truck Crashes

31 Dec 2025: Paige Estritori

The National Truck Accident Research Centre (NTARC), supported by National Transport Insurance (NTI), has released its latest Major Incident Investigation Report, shedding light on the predominant causes of significant truck crashes across Australia. The findings underscore the critical need for targeted interventions to enhance road safety within the transport industry. - read more

Hutch Underwriting Launches Comprehensive Professional Indemnity Insurance for Tradies

31 Dec 2025: Paige Estritori

Hutch Underwriting has unveiled a revamped professional indemnity (PI) insurance policy tailored specifically for tradespeople, including electricians, carpenters, and painters. This innovative coverage consolidates protection against advice, design, and incidental cyber exposures into a single, streamlined solution. - read more

Australian Builders Reassess Insurance Strategies Amid Escalating Construction Costs

31 Dec 2025: Paige Estritori

The Australian construction industry is currently grappling with significant cost increases, driven by persistent supply chain disruptions and a shortage of skilled labour. These challenges are compelling builders to reevaluate their insurance strategies to effectively manage heightened financial risks. - read more

Sterling Insurance Enhances PI Offerings with Lloyd's Binder

31 Dec 2025: Paige Estritori

Sterling Insurance has successfully secured a new professional indemnity (PI) binding authority with Lloyd's, a move that promises to provide Australian brokers with greater control over product offerings and pricing structures. This development is part of Sterling's ongoing commitment to delivering tailored insurance solutions that meet the specific needs of niche and complex risk sectors. - read more

Treasury Initiates Consultation on Professional Indemnity Insurance Reforms

31 Dec 2025: Paige Estritori

The Australian Treasury has commenced a consultation process aimed at improving the effectiveness of professional indemnity (PI) insurance, with the goal of strengthening the Compensation Scheme of Last Resort (CSLR). This initiative seeks to gather stakeholder feedback on the current operation of PI insurance and explore opportunities for enhancement. - read more

Upcover Introduces Specialised Insurance Solutions for Australian Nurses

31 Dec 2025: Paige Estritori

Sydney-based insurtech company Upcover has unveiled a new professional indemnity and public liability insurance product tailored specifically for nurses across Australia. This initiative aims to provide comprehensive coverage that meets the unique needs of nursing professionals, including nurse practitioners, in-patient nurses, doulas, and nursing students. - read more

Allianz Australia Penalised for Misleading Travel Insurance Information

30 Dec 2025: Paige Estritori

In a significant ruling, Allianz Australia Insurance and its subsidiary, AWP Australia, have been fined a total of $16.8 million for providing misleading information about their travel insurance products. The Supreme Court of New South Wales found that between 2016 and 2018, the companies misrepresented the extent of coverage available to consumers, leading to potential misunderstandings about policy benefits. - read more

Allianz Partners Highlights Risks of Travelling Uninsured

30 Dec 2025: Paige Estritori

Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travellers embark on international journeys without any form of travel insurance. This statistic has prompted Allianz Partners to urge Australians to reconsider the importance of securing adequate coverage before travelling abroad. - read more

Click for more Insurance News

Insuring your most valuable asset

While many people would consider their home or their car to be their most valuable asset, it's your ability to earn an income that is most important in shaping your financial future. Statistically, two thirds of working Australians will suffer an injury or illness that will sideline them for 90 days or more. The majority of these people would not be able to pay their mortgage or meet car finance and other loan commitments without adequate income insurance.

... compare rates & options ...