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.
A man whose wife’s life insurance policy was revoked after a superannuation death benefit clause change has lost his dispute.
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.
In a significant shift within the Australian business landscape, artificial intelligence (AI) has ascended to the top of the risk agenda for local enterprises. According to Allianz's annual global risk survey, 61% of Australian executives now identify AI as their primary concern, marking the first instance where this technology has led the risk list in Australia. This represents a substantial leap from its eighth-place ranking in the previous year. - read more
The Australian Securities and Investments Commission (ASIC) has unveiled its enforcement priorities for 2026, placing a significant emphasis on the insurance sector. Key areas of focus include failures in insurance claims and complaints handling, as well as misleading pricing practices that may impact Australians' cost of living. - read more
Australian general insurers have reported a significant after-tax profit of nearly AUD 2.3 billion for the third quarter of 2025, marking an increase from approximately AUD 2.1 billion in the same period of 2024. This uptick reflects a combination of rising premium revenues and a reduction in claims, contributing to the industry's robust financial performance. - read more
In recent developments, Australian insurance companies are facing heightened scrutiny from both government officials and consumer advocacy groups due to substantial increases in insurance premiums. This comes in the wake of the industry reporting record profits, raising questions about the fairness and transparency of pricing strategies. - read more
Australian homeowners are confronting substantial increases in home insurance premiums, driven by a combination of more frequent extreme weather events and escalating building costs. Recent data indicates that the average annual premium for new home and contents policies has risen by 14%, equating to an additional $343 per year for policyholders. - read more
The Australian government has initiated an investigation into the practices of the insurance industry following a surge in consumer complaints regarding significant premium increases and concerns over transparency and fairness. This move comes as policyholders report steep hikes in their insurance costs, with some experiencing increases of up to 600% without clear explanations from their insurers. - read more
AUSactive, Australia's leading body for the exercise and active health sector, has recently introduced a new insurance product tailored specifically for fitness professionals. This initiative aims to provide enhanced protection while offering more affordable premiums compared to existing market options. - read more
AUSactive, the peak body for the exercise and active health sector in Australia, has announced a significant partnership with Health Partners, a not-for-profit health fund with over 85 years of service to South Australians. This collaboration aims to recognize eligible AUSactive personal trainers and fitness businesses as approved providers under Health Partners' Extras policy. - read more
AUSactive, Australia's leading organization for the exercise and active health sector, is collaborating with Private Healthcare Australia (PHA) to spearhead reforms in private health insurance. The primary objective of this partnership is to broaden access to evidence-based preventive health services, including Pilates, Yoga, Tai Chi, and structured exercise programs delivered by accredited professionals. - read more
Health insurance premiums are set to experience a substantial increase in 2026, with projections indicating a global rise of 10.3%. This marks the third consecutive year of significant hikes, following increases of 10% in 2025 and 9.5% in 2024. These figures are highlighted in WTW's 2026 Global Medical Trends report, underscoring the persistent inflationary pressures affecting insurers and employer-sponsored health plans worldwide. - read more
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.
Australian farmers face a unique set of challenges due to the vast and varied climate conditions that sweep across the continent. From the scorching heat and prolonged droughts of the Outback to the tropical storms and torrential rains of the northern regions, weather-related risks are an integral part of agricultural life in Australia. - read more
Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
Hobby farming has become increasingly popular in Australia, with many individuals and families embracing the joys of growing their own produce, raising livestock, and enjoying a rural lifestyle. Whether it's a small vegetable garden, a few chickens, or a larger mixed farming operation, hobby farms offer both relaxation and a connection to nature. - read more
For Australian farmers, livestock is more than just a vital asset; it's the heartbeat of their livelihood. In a land where the sunburnt plains are as relentless as they are beautiful, protecting your herd isn't just a duty; it's a necessity. That's where livestock insurance comes into play—a shield against the unpredictability of Mother Nature. - read more
As the backbone of Australian agriculture, farm equipment plays an essential role in day-to-day operations across our expansive and diverse landscapes. From the vast wheat belts to the tropical fruit farms, machinery ensures efficiency and productivity in the face of constant challenges. But with reliance on such equipment comes significant risk—the financial burden of damage or loss can be devastating to a farmer's livelihood. - read more
Farming is inherently risky. With factors like weather, pests, and market fluctuations affecting crops, it's crucial to manage these risks effectively. - read more
Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. - read more
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
In the world of agriculture, having the right insurance coverage is essential. Farming is a high-risk industry that deals with unpredictable elements, and insuring your farm equipment can safeguard your livelihood. - read more
Farm liability insurance is a type of coverage that protects farmers from financial losses due to legal claims and lawsuits. This insurance is crucial for safeguarding your farm against various liabilities that may arise from farm operations. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Incontestability Clause: A provision in a life insurance policy that prevents the insurer from voiding coverage due to a misstatement by the insured after a certain period.