Major insurer TAL has both acknowledged and defended its position with respect to having been prosecuted in the Federal Court on action pursued by the Australian Securities and Investments Commission (ASIC).
While acknowledging that ASIC had succeeded in pursuing its charges relating to TAL having breached its duty of utmost good faith in relation to some aspects of claims handling, it pointed out that the regulator had lost its argument that TAL was guilty of false or misleading conduct with respect to the handling of the claim.
The ASIC charges against TAL flowed from a case study referred from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
TAL acknowledges the judgment of the Federal Court in the proceedings brought by ASIC involving a customer claim made in January 2014, which was previously examined as a case study by the Royal Commission into Financial Services.
“We note the Court’s dismissal of ASIC’s allegations of false or misleading conduct in the handling of this claim, and the findings that TAL breached its duty of utmost good faith in relation to some aspects of the claim handling.
“At all times during the claims assessment process we endeavour to employ an empathetic and sensitive approach and communicate fully with our customers, and we have previously acknowledged that aspects of the handling of this claim fell below those standards.
“This is not representative of the claims experience we endeavour to provide for our customers, and we continue to refine and improve that claims experience to provide the best possible support for our customers and community.”