The life insurance industry now has more eyes on its practices after the most recent CommInsure findings of poor practices involving insurance claims. Senator John Williams amended the Scrutiny of Financial Advice's inquiry terms to increase investigation into:
- Possible further reforms and improve oversight of the industry
- Any unethical practices being engaged in to avoid meeting claims
- If the life insurance industry needs a code of conduct
- What ASIC's role in reform and oversight should be
Anyone can make a submission on their dealings with their life insurance company if they feel they were wronged or there is a dispute in a payout. Part of the main focus will be to see if life insurance companies have deliberately sought to avoid paying claims.
A class action is being looked into by Watson Law Group for CommInsure clients who may have had their insurance claims unfairly declined by CommInsure. At present, it is thought that out of 40 cases, over half of trauma claims may have been denied based on an outdated definition.