Holding insurance companies to account: why you need an insurance adviser!
The relationship between the parties to an insurance contract is based on the legal doctrine of uberrimae fidei which requires both parties to exercise the utmost good faith in their dealings with each other.
From the client’s perspective, the obligation is to provide full disclosure at time of application and not to hide any relevant information. The insurer’s obligation is to treat the client fairly in all its dealings in managing the client’s policy, and especially at claim time.
When your insurances advisor becomes you insurance advocate
Occasionally, an insurer gets it wrong, often by accident, and it is at times like these that you need an insurance adviser to ensure that the client is treated fairly. A recent example illustrated exactly this point.
A client of mine had damaged his back and had been unable to work for 18 months, during which time he has received his monthly insurance disability benefit. His policy included a clause that while he was on claim and unable to work, he did not have to pay the monthly premium i.e. the monthly premium payments are waived. This obligation should be automatically activated by the insurer.
Recently, I received an email from my client, innocently asking if they needed to keep paying the premiums for the balance of the two-year benefit payment period. This raised an instant red flag and I called the insurer immediately to seek clarification as to why my client was still having premium payments being taken from his account.
The insurer admitted that they had got this wrong, apologised and refunded all the premiums that had been taken while my client was unable to work, a sum in excess of $2,000! My client was delighted: “That is amazing. Thank you for sorting this, Theo. We very much appreciate it”.
Hibiscus Coast insurance advocates there when you need us
This is a simple illustration highlighting the benefit of having an insurance adviser looking after your best interests. As your Hibiscus Coast insurance advocates, we work with you and for you. You can rely on us.
It’s what we do!