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Outrage over Soveriegn's refusal to pay out

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Wayne Croft

Wayne Croft

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Tue, 28 Jul 2009 12:00a.m.

Sovereign Insurance say they will be there when you need them – but dying Christchurch man Wayne Croft would disagree.

Mr Croft was insured for more than two decades with AMP. When he took that insurance, he was as healthy as an ox, and his mum and dad were both still alive.

He was covered for life, until he bumped into an old schoolmate - an insurance salesman for Sovereign. Come to us, the old mate said, so Mr Croft did.

But now he's dying Sovereign won't pay out, citing reasons that would not have applied had he stayed with AMP.

Now Mr Croft is surviving on food bought by his friends, who are also helping pay his bills.

He was diagnosed with terminal prostate, lymphatic and bone cancer late last year. Sovereign says because he did not disclose some minor matters at the outset that are unrelated to his illness, he cannot receive one cent of his payout. That means making ends meet and getting the treatment he needs is now virtually impossible.

He and his wife Jules are cherishing every minute they have together at the moment.

"I'm terminal," says Mr Croft. "It will be a bonus if I see Christmas, according to the specialists. A couple of times already I've been sent home and told me to put my affairs in order because the cancer's so fast. But I refuse to give in. I'll take every day as it comes."

Crofty's dad died in his 60s of prostate cancer. As a result he has had a full-body medical every year for the past seven years.

But in the seven months between check-ups, he got one of the most aggressive cancers his urologist has seen. He is now riddled with it and inoperable.

"I've never seen a cancer that is that fast and aggressive in my whole urological career," says Dr Frank Keuppers.

One saving grace he thought was that he had always had life insurance.

"I'd had life insurance my whole life, my whole adult working life so I was pretty comfortable with that scenario, that I thought I'd taken care of all that.

"So I decided to focus on trying to beat it, because there's no way I'm going to let it try and beat me, and also focus on enjoying my wife and my family."

Mr Croft had life insurance with AMP since he was 18.  But two years after being given the hard sell by Sovereign, he switched to them.

At the time he says he disclosed his medical history and gave them access to his doctors and previous insurance company records to make sure his cover was comprehensive.

Sovereign disputes his version of events and is refusing to pay. They say he failed to disclose four things at the outset: that he had urinary tract issues, was on a common drug for gastric problems, had a history of depression and that his mother had died from a heart-related issue.

But Sovereign admit none of these things relate at all to his current cancer - they simply make his life insurance policy void.

Mr Croft says he never tried to hide anything and was not required to take a medical. 

"The last seven months have been so stressful. I love my wife to bits, she loves me to bits but there's tension there because it's so uncomfortable, and I know I'm going to die, and I know that there's no security for her and it's the reason why I took this life insurance up."

A lot of the tension comes for their struggle to survive day-to-day. The phone has been cut off and they live off Jules' below-average salary.

He is on a cocktail of powerful drugs, including morphine and steroids, but his only chance at extending his life even slightly is non-Government-funded chemotherapy. He needs six sessions at almost $7000 a pop. At the moment he doesn't even have enough money to feed his family.

He has had one session of chemotherapy thanks to donations from both complete strangers and old friends like Karen Scott.

"I decided I had to do something about it," she says. "I couldn't sit by and watch what they were going through and the stressful way they had to live."

Karen has organised a fundraiser tomorrow night at a bar in town to help pay for Mr Croft's chemotherapy.

"He has a terminal illness, he's going to die. Why should he be able to stress every day, and why can't he have some simple pleasures in life? He needs that insurance money to have the chemotherapy, to have some nice times."

"This is not a sad, sombre story, don't get me wrong," says Mr Croft. "I am one of the most positive people you'll ever meet. What this is about is protecting other people and protecting myself."

Campbell Live speaks with Dr John Mayhew, Sovereign clinical director.

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Comments [47]

Sian
21 Dec 2009 12:51p.m.

Wayne passed away this weekend. Thoughts are with you Jules and your family.

Let's hope those who have posted disparaging and unkind comments above do not have to live through what you have. If they do I hope they have as much love and support around them as you have had have and still do.

Jessica
24 Sep 2009 8:36p.m.

Dear Wayne,
What goes around comes around! You are an evil and deceitful man. I doubt you are even ill.

I find it hard to believe that the insurance company and doctors would comment on your particular case, privacy laws prevent it, so is that also part of your latest scam?

For those of you that read this and think that I am being harsh, you should read this very closely indeed.

This man has swindled two people that I can name out of money, and I bet that they would not think twice about coming forward if they had heard of this report.

He swindled a South African family out of $50,000 dollars and left their house unsecure with the brick work only half way up the outside wall.

He swindled a local, respected man out of over $90,000 by sweet talking him into investing into his building company.

His last known swindle backfired, with the person involved promising to take him to court, this is when the cancer card was first played.

He told everyone that he had left England owing families money for work he hadn't completed, and that he is now unable to return due to tax evasion. No wonder he hasn't returned there for treatment through the NHS.

The man has no shame, laughing (literally) in the face of the people he has robbed of their savings.

And the worst of all of it, people are now donating money to this man! I am outraged for the people that have suffered because of this man.

Shame on you Wayne!!!

Jasmina
25 Aug 2009 10:12a.m.

I guess there is a lesson here for us all. Why after 18 years with AMP did Mr Croft change his insurance company? If he had stayed with AMP his claim would have been paid. When an insurance agent persuades a policyholder to repeatedly switch policies, this is known as “churning” or “twisting,” and it is a violation of the Unfair Trade Practices Act in the United States. Any type of misrepresentation, or any false, deceptive, or misleading statements used in connection with churning are also violations of the Act.

The motivation behind churning is that insurance agents often get higher commissions for new policies rather than for renewals, and they can also receive bonuses based on the quantity of new policies they sell. Churning frequently occurs in connection with life insurance, Income Protection and Critical Illness or Trauma policies. Churning occurs when an insurance agent induces a policyholder to switch to a policy offered by a different insurance company, without any actual benefit to the policyholder. Several large insurance companies were subject to class action lawsuits for churning in the ‘90s.

Sometimes your financial situation or goals change, and sometimes you really can benefit from a new policy. By exercising caution and educating yourself about the types of coverage available, you will have a better chance of getting what you need without getting fleeced.

I am not sure whether this has been regulated in New Zealand.

Jimmy
23 Aug 2009 2:27p.m.

This message is to all you knockers about this case who are not supporting Wayne and Jules.One being Ray or should I say Hooray for when Crofty wins. Give it time and I know he will win. You have heard the expression about assumptions being the mother of all f... ups. Will again they say Knowledge is Power. That is wrong too as Correct Knowledge that is applied correctly is the most powerful tool one can have.Wayne and Jules hang in there as help is on its way.

Concerned
21 Aug 2009 12:06p.m.


So sorry to hear this story Jules and Crofty, my heart goes out to you both and I'm sure if people were in your shoes they would see things differently. It's a tragedy that under these circumstances companies like Sovereign cant look beyond their bureaucracy and help the plight of a dying man and his family. Know this....what goes around comes around and it is almost an immutable law of life that turning away from those in desperate need when you have the power to help them will surely have consequences. Kia Kaha (Stay Strong) J&C it aint over yet ! What has our corporate society come to when they favour a technicality over mercy to help their own unfortunate client ? This is an unusual case and deserves merit outside the normal channels. Shame on you Sovereign for your lack of compassion to these Kiwi customers of yours. So much for your values "Putting people first" and "You can trust Sovereign" I was thinking of those values when I read about you in the NZ Herald "Sovereign Profit soars to $109 Million for 2009" Too bad Jules and Crofty will not be on the receiving end of thsoe profits nor those values !!

Alien
17 Aug 2009 6:51p.m.

Rob, while you feel frustrated, how disgusting of you to hope that someone comes done with a disease, grow up. I've seen enough people with illnesses and disabilities to hope that no one ever comes down with any serious illness or be left with a disability. This is a sad matter, without reading all the replies, Jules, have you tried WINZ, he should be able to get a sickness or disability allowance as his life expectancy is less than two years. why do people always say they are the most honest, etc, etc that you will ever meet. Sorry but i hate that, what makes you more honest than other honest people. All you need to say is that you are honest, all the other stuff added in makes it sound dramatic, over the top.

Tim
12 Aug 2009 9:23a.m.

Mary - They're not going to check records if you say that you're healthy though?

Did they offer to go to the Insurance & Savings Ombudsman? I'm sure they would of. If so, you should fight the battle there not in the media.

Jules Croft
07 Aug 2009 12:06p.m.

I read with avid interest some of the comments made after this aired on national TV. I am Wayne's wife and by no means has this been an easy road to ho!. Sadly the representative did not tell the truth, Wayne and I did. So much for an old school friend huh! he no longer wants to know us!!!!. We are the most honest and hard working people you shall ever meet and there are issues regarding this case that are not public but believe me it would make mince meat out of Sovereign and their so called reasons for not paying out on Wayne's claim. The agent was given all the information so how come Sovereign know nothing! Of course this issue of them not retreiving our medical records - well it was a waste of time us signing a discloure form then wasnt' it! I pray that no one else has to endure what we are going through. We have always made sure that in the event of a disaster like this that either one of us would be financially secure, now we are left with nothing and selling our assests to live and to pay for Wayne's treatment that is sadly not Govt. funded!I am nearly 50 years old now with no financial security, and a husband who is going to die - Welcome to my world. My sincere thanks for those who have supported us and got this story our there. The fight is not over!

Rob
06 Aug 2009 9:00p.m.

Ray I hope that someday you come down with an illness and maybe then you will understand as a person who has known Wayne all my life this person is one of the most honest and non selfish people one could ever meet.I really feel for wayne and jules ,as you sit at home drinking your wine and eating your salmon in front of your 106cm plasma TV in your million dollar mansion these people need help do you at all have a heart or was that taken away from you when you where young God Bless you Crofty and Jules be strong for all will come good
P.S Facebook,Bebo,My Space,You Tube the word is out Soverign your wheels are about to fall off """"""""

Brad
06 Aug 2009 8:36p.m.

Ray must be the PR rep Sovereign has assigned to cover this message board

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