New claims-handling allegations highlight value of advisers
Television reports revealing the problematic nature of total and permanent disability (TPD) claims by police officers under group insurance arrangements have served to reinforce the value of good advisers, according to Association of Financial Advisers (AFA) chief executive, Brad Fox.
Commenting on an ABC Four Corners report detailing instances where insurance companies were alleged to have delayed TPD claims by police officers suffering post-traumatic stress disorders, Fox believed it needed to be emphasised that advisers were well-equipped to help clients navigate the complexities of insurance claims.
He agreed that in virtually all of the instances cited in the Four Corners program the claims related to group insurance which had been provided by superannuation funds and where financial advice had not actually been a factor.
"We have been hearing ever more frequent stories about such instances which force those making the claims to seek legal representation which, in turn, gives rise to considerable expenses and erodes the amount they might ultimately achieve when a claim is settled," Fox said.
"It is at claims time when a good risk adviser can be your friend in helping you navigate the complexities," he said.
The Four Corners program detailed instances of where insurance companies had sought to contest the validity of the TPD claims being made by police officers and where they had retained the services of private investigators to carry out surveillance on those making the claims.
During a number of recent roundtables conducted by Money Management's sister publication, Super Review, superannuation fund executives insisted that they seek to defend their members' interests in pursuing legitimate claims against insurers.
The Four Corners report has come just weeks after the Minister for Financial Services, Kelly O'Dwyer, told the Financial Services Council (FSC) Leaders Forum in Melbourne that the Government was awaiting a report from the Australian Securities and Investments Commission (ASIC) on whether claims handling issues detected at CommInsure were reflective of broader industry issues.
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