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One of the most overlooked issues with
insurance in New Zealand, is a lack of full disclosure that
occurs on many policy applications and its negative impact at
claim time. This is particularly prevalent in Health Insurance
claims, probably due to the higher frequency of Health Insurance
claims per policy compared to Trauma-,Disability- and Life cover
claims. The impact of repudiation of a Life Insurance or a
Disability claim will arguably prove a lot more devastating to
families than nonpayment of a Health Insurance claim, where many
claimants still have access to the National Health System. Non
payment of Life and Disability claims may lead to poverty in
many instances.
Generally, insurers in NZ have a good claims paying reputation
but sadly, it has come to my attention over recent years, that
some immigrants do not fully disclose all relevant medical
history in the old country, believing that this will remain
undetected. When a condition re-occurs, the history is normally
disclosed to the Insurer by the local Doctor in the claims
process and this can render such a claim void due to
non-disclosure at time of application.
It is believed that the chances of non disclosure may be a lot
higher with online life insurance applications or policies taken
out with banks or online, compared to those taken out through
dedicated experienced Advisers who have been in the business for
many years and who have assisted clients with claims. It has
been said that a Life Insurance Adviser cannot truly call
him/herself an Adviser if they have not assisted a family
through a Life Insurance claims process. It is important to know
that the consequences of non-disclosure of material information
during the application process may have a devastating impact at
claim time, whether nondisclosure was deliberate or not, and
also whether the application form was completed by the client or
the adviser, on behalf of the client.
We advise that, if policy owners have doubts about full
disclosure on their applications, to speak to their broker to
rectify it. Fritz is willing to investigate possible
non-disclosures for those who do not have a dedicated Insurance
Adviser and for existing clients who have doubts about full
disclosures. Please do not hesitate to contact us if you have
any doubts about possible non-disclosure on your cover
application so that we can help you to set the records right. We
know how to investigate this very confidentially and
effectively.
Fritz can be contacted on 09-4735210 for a confidential
discussion or to arrange for an appointment, or send an e-mail
to Fritz on
fritz@fritzswart.co.nz .
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