NSW Income Protection Insurance - Is This Blackmail?

[Robski]

Hello & best regards,

I am receiving payments from an insurance company under income protection insurance. The monthly payment limit imposed by the Financial Ombudsman Service prevents them from helping me.

I have been deemed permanently disabled & unemployable by doctors. Been receiving monthly payments for 5 years now with occasional hiccups with the Insurer, as you do...They have requested copies of my income tax returns. This isn't stipulated in the policy wording/document. I have an "agreed value" policy with 5% increase each year. Is this allowed?

I recently discovered that the Insurer has been under paying me for a number of years. This was pointed out a number of months ago and I have been chasing the money from them, to no avail.

The reason for the non-payment of what I am owed is that they want to see my tax returns first. So, effectively, this Insurer has said "We will only give you what you are owed once you give us copies of your income tax returns."

To me, this is blackmail or am I being overly dramatic?

Thanks for reading.

 

[Sophea]

Hi robski,

this is blackmail or am I being overly dramatic?

Maybe a little. Under any insurance policy, you as the insured have an obligation to disclose relevant information to your insurer. If what they are asking for is relevant to your claim, then you must give it to them. It's unfortunate that the Ombudsman cannot help you out.

Have you considered applying for Total and Permanent Disability Insurance? Most people have them attached to their superannuation accounts, you may have one without even knowing it. This would provide you with a lump sum payout which may assist.

 

[Robski]

Hi robski,



Maybe a little. Under any insurance policy, you as the insured have an obligation to disclose relevant information to your insurer. If what they are asking for is relevant to your claim, then you must give it to them. It's unfortunate that the Ombudsman cannot help you out.

Have you considered applying for Total and Permanent Disability Insurance? Most people have them attached to their superannuation accounts, you may have one without even knowing it. This would provide you with a lump sum payout which may assist.

Thank you for replying.

I have already received the superannuation TPD payout. My income protection insurance is with a different company.

I have spoken with a number of "financial advisors" who have different opinions. Some say that I have to supply the income tax returns because it shows if I am earning income from any other sources (so that I am not defrauding the insurer) and others have said that because I have "one of the old agreed value policies that are different to the 80% policies," there is no requirement to provide copies of my tax returns and that a statement from my accountant stating that the Insurer was the only source of income should have sufficed.

I honestly cannot work. If I mop my laundry & kitchen (I have cleaners, but, you still need to clean a bit) I am done for hours and have to lay down, so working is definitely not on the cards.

Do you think that I should seek legal advice concerning this? The only reason I ask is that a friend who is 25 year serving ex Police Officer said to me "what the insurer is doing sounds like blackmail or almost a ransom scenario which should be reported." I haven't even received an apology.

I thought that policy documents/wordings/PDS were the basis of anything concerning policy issues. Insurers rely on these constantly to refuse claims.

So, if its not in the policy wording, the Insurer cannot request or behave in a manner so being, I would have thought?

Do you think that I have grounds to seek compensation for their behaviour? I have had 4 x heart attacks thanks to stress.

Thank you again for the reply.