Could your insurance policy be declared void?

3/07/2012 12:32:58 p.m.

Brent Senior-Partridge wrote:

Life Insurance. In the 90's changed banks and the payment was missed. No letter from insurance about this but got 4 lots of advertising. Month later they cancelled my policy after 15years!

3/07/2012 11:06:37 a.m.

Robin F wrote:

@Andrew H - arrrgh hello, do you really believe that is the way forward. why would an Insurance company refund premiums paid by a client that in your own words lies about their background - remember in Insurance clients have both a moral & legal obiligation to disclosure - ignorance is not acceptable - these are the type of people likely to commit Fraud anyway.

3/07/2012 10:22:24 a.m.

Paula wrote:

Interesting in that my insurer withheld information from me recently and did not disclose it as per their policy terms - I took my complaint to the Ombudsman and they said that whilst they agreed (had everything in writing), they had no teeth to go after my insurer (STATE). My policy also stated that they will settle in a timely manner (yeah right), they will explain the claims process (also not done), keep me updated (another TUI), you get the drift. I would like the NZ Insurance Council or the Ombudsman to take a stronger stance against insurers who do not live up to their part of the policy.

3/07/2012 10:08:54 a.m.

Dave wrote:

well he did seem to forget to mention quite a few things, but the accident was not related to those. the insurance compnaies should get hold of a clients medical records. I hope they gave him a full refund at least.

3/07/2012 8:48:26 a.m.

Rob D wrote:

I'm with Andrew H, there should be at least an option for the customer to get someone from the insurance company to take a through look at your application before it is accepted, and if that incurs a fee than so be it. But to expect to have cover and than when you need it, it gets null is far worse.

3/07/2012 8:24:15 a.m.

Mike wrote:

If making any contract, need to take care.

So many people think nothing of lying to insurance companies and we have millions in insurance fraud each year. This then leads the insurance companies to suqeeze claims hard to reduce the fraud.

The policies are very specific for information, if the policy holder choses to not declare information, and later makes a claim, they lied on their application. This is just trying to legitimise lying in contracts.

Next we will have people wanting protection to lie in other contracts. where will it stop? Should we be allowed to cheat in our education and have the law protect the cheaters so our education is worth even less?

I have a brother who is dishonest who I can't stand. He has lied to police, he has lied for insurance, lied to banks, even lied on his passport application. He basically can't so much as open his mouth without lying. I've even heard him telling how he purchased some tools which he had - which were engraved with someone elses name which he obviously stole from! Such liars should have their claims knocked back. Lie on applications, reap the consequences.

@Andrew if the insurance companies have to investigate every applicant as you suggest, what would happen to insurance premiums? Those investigation costs would be passed on in the way of much higher premiums for everyone.

2/07/2012 8:48:41 p.m.

Andrew H. wrote:

If a Insurance company is to null and void a contract due to incorrect information from the start and will be determined non existent then all the money payed into the insurer should be returned to the customer as its basically theft in my mind. Not doing the investigation at the start of a contract is their fault and there should be a law that states that. They cant take say 15 - 30 dollars per week for 6 years say {which is basic cover for health and income protection}, then you come in with a injury or health problem and try to claim and they say your contract basically never existed because you didnt give every single bit of information even if it isnt relevant to the situation and thus they deem your contract with them never existed. In my mind they should reimburse all money you have paid to them if that were the case, so for the sum above it would be $4,680 - $9,360 to be given back at least and that should be applicable right now. I do fully believe that there should be a law in place asap to state that a insurance company is obligated to do a thorough investigation before accepting a customer to insure and if a customer doesnt want to disclose the information then they dont get insured. Simple. Safe and should still be affordable.