Connect with us

Hi, what are you looking for?

Loan And Finance

‘Lawful and consistent’: insurer wins dispute over premium rises – Life Insurance – Insurance News

inca social logo


‘Lawful and consistent’: insurer wins dispute over premium rises

4 April 2022

A complainant who disputed the increased premiums charged to two policies he held with AIA has been told the new rates were raised “lawfully” and were “consistent” with the contract terms.

He took his case to the Australian Financial Complaints Authority (AFCA), arguing the higher premiums for his income care and total care policies are unfair, higher than disclosed in the correspondence he received from the insurer, and that the revised rates should be reviewed and rectified.

But AFCA dismissed his complaint, ruling the policies that he had taken up with the assistance of an adviser were on a stepped premium structure, meaning rates will increase over time as the insured gets older. The adviser is not an agent of AIA.

AFCA says its remit does not allow it to deal with complaints about the level of a premium unless it falls within certain exceptions.

Based on what the complainant submitted, AFCA says the contracts for the two policies specifically spell out details about the application of the stepped premium structure and how they work.

Advertisement. Scroll to continue reading.

“There is no dispute the complainant received the policy documents,” AFCA said. “I accept the policies clearly and unambiguously explain that when a stepped premium is selected, the premium will generally increase as a life insured gets older.”

AFCA notes also that the two policies, which the complainant took up in August 2012, contained provisions that “clearly” state future premium rates are not guaranteed and the insurer can change these rates for all policies in a group.

AIA changed the rates of the premiums in the 2020 policy anniversary for both policies, resulting in some of the premium increase.

AFCA says insurers rely on sufficient premiums being paid to cover potential claims, and if an insurer is unable to alter its premium within the terms of the policies, then its financial health may suffer.

Click here for the ruling.

.



Source link

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Latest

Technology

We are excited to bring Transform 2022 back in-person July 19 and virtually July 20 – 28. Join AI and data leaders for insightful...

Loan And Finance

Authored by AXA XL AXA XL has named Libby Benet to the role of Global Chief Underwriting Officer (GCUO), succeeding Nancy Bewlay, who recently...

Social Media

Social media managers, rejoice – today, TikTok has added a new set of social media management platforms to its Marketing Partners Program, which will...

Top Stories

The cryptocurrency market was hit with another round of selling on May 26 as Bitcoin (BTC) price dropped to $28,000 and Ether (ETH) briefly fell...

Technology

Did you miss a session from GamesBeat Summit 2022? All sessions are available to stream now. Watch now. Rex Crowle solidified his striking art...

Social Media

Snapchat is looking to lean into the rising trend of collaborative content, with the launch of a new ‘Shared Stories’ option, which enables users...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement