Would you like insurance with that?
Finance company failed to ensure insurance met customer’s needs breaching its obligation under the Responsible Lending Code
Topic: Insurance
Kaikoura earthquake causes loss
Alan claimed for a loss of $50,000 under his business interruption policy. Alan’s insurer accepted the claim but offered compensation of $12,500. Alan contacted his broker assuming the insurer had made a mistake given the cover he had in place. The broker explained that because his lodge was undamaged, he was only eligible for contingent business interruption cover. Alan’s policy limited the contingent business interruption cover to 25% of the total amount insured.
Lost bag a lost cause
When Ashish accidentally left his laptop bag on the backseat of a taxi. Ashish made a claim for his lost bag. However, his insurance policy specifically excluded cover for items left behind in a taxi. Ashish thought the policy was fraudulent and he had been misled.
FSCL won’t pre-determine potential claims
After disclosing his medical history to his travel insurance company, Charles is told that he needs to pay an additional premium for pre-existing medical conditions cover. Charles believes that he does not have a pre-existing medical condition and does not want to pay the premium. He asks FSCL to determine whether he does have a pre-existing medical condition as defined under the policy.
Unwell travelling companion can cost you
Mike and Margaret were travelling to Hawaii for a holiday. Unfortunately Margaret had a recurrence of leg ulcers and could not fly. Mike and Margaret changed their flights and accommodation to later in the year. Mike and Margaret’s separate travel insurance claims were declined because Margaret’s leg ulcers were deemed a pre-existing medical condition. Was this fair?
A suspended claim
After a holiday, Sarah is tired and asks her partner to drive her car home from the airport. On the way home another car drives into them causing damage to Sarah’s car. Sarah claims for the repair costs from her insurer, however, her insurer declines the claim because, unbeknown to Sarah, her partner is a suspended driver. Sarah asked us to review her insurer’s decision to decline the claim.
What a pain! Awaiting a specialist opinion for chest pain means there is no travel insurance cover.
Renee and Raymond book a trip to the islands. Before purchasing travel insurance, Renee had been suffering chest pain and was awaiting a specialist appointment. When the specialist suspects Renee has blocked arteries he advises them to cancel their trip. Renee and Raymond’s travel insurer declines their claim for cancellation costs on the basis of a pre-existing medical condition exclusion clause.
Non-disclosure results in a painful hospital bill
Mei needed hospital treatment while she was in Hawaii. Her insurance company declined to cover the hospital bill as it considered Mei went to hospital for a pre-existing medical condition. Did the insurance company correctly decline Mei’s claim?
Insurance company revisits declined claim
Paula sadly died from a heart attack after she was involved in a car accident. Her insurer declined an accidental death claim because it consider the cause of Paula’s death was not a direct result of any accidental injuries.
Insurance which suits insurance for a suit
Period of Insurance ended when traveller returned to New Zealand, meaning bags left overseas were disposed of outside the period of insurance.
