Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Declined TPD claims need to be addressed

AIST/ban/

13 October 2016
| By Jassmyn |
image
image image
expand image

The Australian Institute of Superannuation Trustees (AIST) has welcomed the corporate regulator's commitment to further investigate the variation in declined total and permanent disability (TPD) claims.

The Australian Securities and Investment Commission's (ASIC's) report into the life insurance sector of claims handling found life insurers identified the variation in declined claims among insurers for TPD were seven to 37 per cent.

AIST chief executive, Tom Garcia, said: "Insurance is a very complex product, arguably more so than superannuation".

"There are many factors involved in the claims handling process so it's vital that we have a better understanding of the underlying drivers behind such apparent inconsistencies," he said.

"Where members are not getting value from their insurance, or worse, not getting pay outs that they are entitled to, this must be addressed."

Garcia also welcomed ASIC's recommendations to establish a new public reporting process with the Australian Prudential and Regulation Authority (APRA) and to strengthen the dispute resolution framework about insurance.

He noted the Government's decision to introduce caps on commissions for financial advisers selling life insurance outside super was also a move in the right direction.

"Wherever insurance is sold, consumers have a right to expect that the way it is sold and the way the claims experience is handled meets best practice standards," Garcia said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 6 days ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 1 day ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 5 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND