Theinsurance arm of the Commonwealth Bank of Australia, CommInsure, has added new features to its Personal Insurance Portfolio, allowing policyholders to accumulate refunds on premiums and additional cover as rewards for their loyalty.
The features, which took effect on October 1, 2002, were put in place to meet growing market demand for loyalty rewards in the insurance market.
“Customers have had issues with paying premiums all their life and getting nothing in return,” Comm-Insure managing director Peter Beck says.
“Feedback from policyholders through advisers has shown that customers want to be rewarded for their loyalty.”
The rewards program includes a cash-back option, enabling policyholders to accrue a return of up to 20 per cent of their premiums if they pay 10 per cent more on their annual premium.
“If customers select the option, they will get a refund of 14 per cent on their premiums after four years and 20 per cent after 10 years providing no claims are made,” he says.
Additional life, trauma and accident cover has also been made available for long-term policyholders under the rewards program.
CommInsure has also introduced a severe hardship booster benefit that recognises some severe conditions, such as meningococcal disease, which financially affect victims’ lives more than others.
The changes are the first made under the new Comm-Insure brand, which is to be officially launched by the bank early next year.