Life insurers play dirty: MP

Life insurers have been accused of using dirty tricks to avoid paying out claims made by people with chronic fatigue syndrome (CFS).

Life insurers have been accused of using dirty tricks to avoid paying out claims made by people with chronic fatigue syndrome (CFS).

In a speech in Queensland parliament, Labor MP Jim Pearce recently called for an investigation into insurance companies to expose the systematic refusal of claims made by CFS sufferers who had taken out income and mortgage protection before they fell ill.

Pearce named National Mutual as one group who had taken a hard line in his speech before parliament.

"They appear to be using every weapon in their dirty tricks arsenal to stall claimants' applications and discourage them in their efforts to access funds to which they are rightfully entitled," Pearce said.

But an Axa Australia spokesperson denies the company discriminates against CFS sufferers.

The income protection claims made by 90 Australian CFS sufferers had been paid out over the past three years, she says.

"The three criteria for income protection policy claims are: that the person is-n't working; that they're unable to work; and that they're under the care of a medical practitioner," she says.

"If they meet these three criteria we will pay the claim."