Post by Banjo on Jul 2, 2016 6:18:56 GMT 7
Wrong paperwork prompted bank to cancel man's disability payments
An injured man was denied tens of thousands of dollars under his income protection policy with ANZ after the bank's insurance arm allegedly bungled his paperwork.
Steve Lorraine said he was given the wrong policy documents when he claimed on his disability insurance through OnePath, a division of ANZ, which led him to believe he could move from Australia back to his native New Zealand without his payments being affected.
The 56-year-old sales worker was approved for two years worth of benefits in August because he is unable to work due to osteoarthritis of the knee.
He recently asked his lawyers to review the insurance policy to find out if he would still be entitled to the benefits if he moved back to New Zealand. The lawyers told him the move would not affect his payments and his family relocated earlier this year.
But shortly after settling in New Zealand, OnePath informed him that his $3000-a-month payments would be cut off a year early because he breached a clause prohibiting him from living overseas. Mr Lorraine stood to lose $38,500 when the benefits stopped in July.
Maurice Blackburn lawyer Hayriye Uluca said the policy documents provided by OnePath did not include the travel exclusion clause and it was on the basis of the incorrect information that her client decided to move overseas.
"We clarified it with [OnePath] and they said 'yes, we have given you the wrong policy and in the future we'll make sure this doesn't happen again'. Then they sent the correct policy that clearly sets out this exclusion and said based on that they were right in their decision and it would be cancelled."
In an email from OnePath in April, a claims assessor attached the "correct policy" and said the issue had been escalated to management so "this can be rectified for the future".
However, despite repeated requests and a formal complaint the insurer refused to budge from its position, until contacted by Fairfax Media.
On Friday, an ANZ spokesman said Mr Lorraine's payments would not be cancelled "until the matter is fully clarified".
"While we can't talk about the specifics of our client's policy details, we've been working hard to ensure he and his legal representatives were given the appropriate information to make an informed decision," he said.
"While we carry out a full investigation in conjunction with his legal representatives, we will continue to support him by providing current ongoing payments until the matter is fully clarified."
ANZ has so far been unable to provide evidence that it gave Maurice Blackburn all the relevant policy documents.
Ms Uluca said OnePath had being "entirely unreasonable" and that a complaint about the insurer's conduct was being prepared for the Financial Ombudsman Service.
"This person was on his last dollar and in his time of need, when he needed this policy to respond, the insurer was disingenuous," Ms Uluca said.
Mr Lorraine, who spent $20,000 moving to New Zealand to be closer to family, said he could not afford to move back to Australia and will have to apply for welfare when the payments are cancelled.
"My wife and I have been so stressed ... and I should not have had to go through the last three months of not knowing how we are going to survive," he said. "Had I been told I wouldn't be paid if I wasn't living in Australia we would have never had come home because I can't work and we have no income.
"OnePath admitted their fault, they sent the wrong contract, they made the mistake and they said they would cut me off."
Earlier this year, ANZ conducted an independent review of OnePath after a slew of breaches and compliance concerns raised by regulator, the Australian Securities and Investments Commission.
The breaches, which related to ANZ's life and general insurance activities as well as its superannuation and fund management business, affected 1.3 million customers and totalled $53.5 million.
It followed a series of scandals in the financial services sector including the recent revelations of egregious misconduct allegations at Commonwealth Bank-owned insurer, CommInsure.
ANZ also sells insurance through OnePath to its customers in New Zealand.
www.westcoastsentinel.com.au/story/4004571/wrong-paperwork-prompted-bank-to-cancel-mans-disability-payments/?cs=7
An injured man was denied tens of thousands of dollars under his income protection policy with ANZ after the bank's insurance arm allegedly bungled his paperwork.
Steve Lorraine said he was given the wrong policy documents when he claimed on his disability insurance through OnePath, a division of ANZ, which led him to believe he could move from Australia back to his native New Zealand without his payments being affected.
The 56-year-old sales worker was approved for two years worth of benefits in August because he is unable to work due to osteoarthritis of the knee.
He recently asked his lawyers to review the insurance policy to find out if he would still be entitled to the benefits if he moved back to New Zealand. The lawyers told him the move would not affect his payments and his family relocated earlier this year.
But shortly after settling in New Zealand, OnePath informed him that his $3000-a-month payments would be cut off a year early because he breached a clause prohibiting him from living overseas. Mr Lorraine stood to lose $38,500 when the benefits stopped in July.
Maurice Blackburn lawyer Hayriye Uluca said the policy documents provided by OnePath did not include the travel exclusion clause and it was on the basis of the incorrect information that her client decided to move overseas.
"We clarified it with [OnePath] and they said 'yes, we have given you the wrong policy and in the future we'll make sure this doesn't happen again'. Then they sent the correct policy that clearly sets out this exclusion and said based on that they were right in their decision and it would be cancelled."
In an email from OnePath in April, a claims assessor attached the "correct policy" and said the issue had been escalated to management so "this can be rectified for the future".
However, despite repeated requests and a formal complaint the insurer refused to budge from its position, until contacted by Fairfax Media.
On Friday, an ANZ spokesman said Mr Lorraine's payments would not be cancelled "until the matter is fully clarified".
"While we can't talk about the specifics of our client's policy details, we've been working hard to ensure he and his legal representatives were given the appropriate information to make an informed decision," he said.
"While we carry out a full investigation in conjunction with his legal representatives, we will continue to support him by providing current ongoing payments until the matter is fully clarified."
ANZ has so far been unable to provide evidence that it gave Maurice Blackburn all the relevant policy documents.
Ms Uluca said OnePath had being "entirely unreasonable" and that a complaint about the insurer's conduct was being prepared for the Financial Ombudsman Service.
"This person was on his last dollar and in his time of need, when he needed this policy to respond, the insurer was disingenuous," Ms Uluca said.
Mr Lorraine, who spent $20,000 moving to New Zealand to be closer to family, said he could not afford to move back to Australia and will have to apply for welfare when the payments are cancelled.
"My wife and I have been so stressed ... and I should not have had to go through the last three months of not knowing how we are going to survive," he said. "Had I been told I wouldn't be paid if I wasn't living in Australia we would have never had come home because I can't work and we have no income.
"OnePath admitted their fault, they sent the wrong contract, they made the mistake and they said they would cut me off."
Earlier this year, ANZ conducted an independent review of OnePath after a slew of breaches and compliance concerns raised by regulator, the Australian Securities and Investments Commission.
The breaches, which related to ANZ's life and general insurance activities as well as its superannuation and fund management business, affected 1.3 million customers and totalled $53.5 million.
It followed a series of scandals in the financial services sector including the recent revelations of egregious misconduct allegations at Commonwealth Bank-owned insurer, CommInsure.
ANZ also sells insurance through OnePath to its customers in New Zealand.
www.westcoastsentinel.com.au/story/4004571/wrong-paperwork-prompted-bank-to-cancel-mans-disability-payments/?cs=7
