Rising Tide Blog

What we can learn from the CommInsure Scandal

Posted by Matt Hale

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When one of Australia’s biggest life insurance companies is being investigated for misconduct it’s only natural that many Australians will be taking a second look at their own policy.  So how do you protect yourself and maximise the chances of your claim being accepted and paid out should the need arise?  
Here are the key things we recommend to all our clients:
  1. Be 100% honest with your paperwork! You may not want to disclose that embarrassing medical issue that popped up in your early 20’s, but legally you have to when it comes to setting up your insurance policy.  Don’t forget that your (and your family’s) medical history is on record so there’s no point in trying to hide things!  Not being totally honest is illegal and will likely cause the claim to be knocked back.
  2. Choose an insurance policy that is suitable for you under the guidance of a qualified expert. Not all insurance policies are created equal, so it’s important you seek advice from someone who knows what they’re doing and who understands which insurers have a great reputation for paying claims.
  3. If you think something could be claimable, or you have any change in your health touch base with your adviser – they are the best person to initiate and facilitate a claim on your behalf. Often claims are time consuming & arduous, which is why potential claims get put in the ‘too hard basket’ during a moment of crisis.
  4. Ignorance isn’t bliss –  Just because your super account says you have income protection or life insurance included, doesn’t mean it’s the right fit for you.  Most people don’t realise that there can be huge restrictions around definitions for insurance held within your super account, so a qualified second opinion never hurts.
  5. Review your cover – If you get married, divorced, start a new job, get made redundant, become pregnant, go on maternity leave, or purchase or sell a home then it’s time to review what you have in place. This is the best way to ensure you are getting bang for your buck & that you are going to be covered when you most need it. 
  6. Get help if you ‘hit a brick wall.’  I have worked as financial planners in Melbourne for more than 15 years and I am pleased to say, contrary to the poor customers of Comminsure, I have never had an insurance claim denied.  So if you find yourself in this position and you believe you’ve been honest when you applied for the cover contact an insurance expert like me before you start paying expensive lawyers.