The Dangers and Prevalence of Non Disclosure in the Insurance Industry.

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 021 183 8936 for a confidential discussion or to arrange for an appointment, or send an e-mail to Fritz on fritz@fritzswart.co.nz .

Life Insurance Premium Indicator

Approximate fortnightly Premium Rate for Life and Terminal Illness Cover in New Zealand.

Non-Smoke rates in NZ$.

For accurate personal quotations and further information contact Fritz Swart on 021 183 8936 or send an e-mail to: fritz@fritzswart.co.nz

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