Business Insurance Online :: News
SHARE

Share this news item!

Husband loses insurance dispute over wife's death

Husband loses insurance dispute over wife's death

Husband loses insurance dispute over wife's death?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A man whose wife’s life insurance policy was revoked after a superannuation death benefit clause change has lost his dispute.

Legislation that started in March 2019 would have ceased the woman's default cover, unless she responded to a notice saying she wanted it to continue. The trustee said it complied with legislation by emailing the notice, but the complainant said she never received it.

The life insurance policy ceased on July 1 2019. On March 5 2020, the member asked for a replacement of the policy and was covered again. The member died on February 12 2021, and the complainant made a claim for the death benefit.

But AIA declined to pay, after determining that she had died from a preexisting medical condition. The complainant argued that he should be paid the death benefit but the trustee rejected the claim.

The complainant stated that it was never their intention to cancel the death benefit and in fact were relying on the benefit payout as part of her final estate for the family.

He went on to say that the trustee had failed to appropriately notify them that the death benefit would be cancelled.

He said that they had not been initially made aware that the death benefit had ceased. "When we did become aware, via online account, that the death benefit had ceased, we contacted [the trustee] to have it reinstated immediately.” he said.

He said the trustee also did not mention that the new cover excludes pre-existing conditions.

However, the Australian Financial Complaints Authority said it was satisfied and that new cover was explained in the Product Disclosure Statement. The decision to decline the claim is fair and reasonable, it added.

Published:Tuesday, 17th May 2022
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Debate Intensifies Over Proposed Legal Fee Caps in Australian Insurance
Debate Intensifies Over Proposed Legal Fee Caps in Australian Insurance
09 Apr 2026: Paige Estritori
The Australian insurance sector is currently witnessing a significant debate over the Insurance Council of Australia's (ICA) proposal to implement caps on legal fees associated with civil liability claims. This initiative aims to address the rising insurance premiums that have been a concern for small to medium business owners across the nation. - read more
Premium Affordability and Cybersecurity Emerge as Top Challenges for Australian Insurers
Premium Affordability and Cybersecurity Emerge as Top Challenges for Australian Insurers
09 Apr 2026: Paige Estritori
In the dynamic landscape of the Australian insurance industry, a recent survey conducted by Gallagher Bassett has shed light on the primary challenges confronting insurers in 2026. The findings underscore a significant reshaping of priorities, with premium affordability, cybersecurity, and labour shortages emerging as the most pressing concerns. - read more
Australian Commercial Insurance Rates Experience Significant Decline in Late 2025
Australian Commercial Insurance Rates Experience Significant Decline in Late 2025
09 Apr 2026: Paige Estritori
The Australian commercial insurance sector has witnessed a notable shift, with rates experiencing a significant decline in the fourth quarter of 2025. According to Marsh's latest Global Insurance Market Index, commercial insurance prices in Australia dropped by 12% during this period, marking the steepest decrease among the eight regions monitored by the index. - read more
Javln Strengthens Australian Market Position with Organiseit Acquisition
Javln Strengthens Australian Market Position with Organiseit Acquisition
01 Apr 2026: Paige Estritori
In a strategic move to bolster its presence in the Australian insurance sector, New Zealand-based insurtech company Javln has acquired Organiseit, a prominent Australian document management system provider. This acquisition follows Javln's successful $6 million capital raise in October, earmarked for accelerating its growth strategy and expanding its footprint in Australia. - read more
Insurance Council Declares Catastrophe as Victoria Bushfires Intensify
Insurance Council Declares Catastrophe as Victoria Bushfires Intensify
01 Apr 2026: Paige Estritori
The Insurance Council of Australia (ICA) has declared an insurance catastrophe in response to the escalating bushfires across Victoria, underscoring the profound impact of climate change on the nation's insurance landscape. Since January 7, bushfires have ravaged over 400,000 hectares of land, leading to a surge in insurance claims and raising alarms about the increasing frequency and severity of such events. - read more
Click for more Insurance News
Insuring your most valuable asset
Image for Insuring your most valuable assetWhile many people would consider their home or their car to be their most valuable asset, it's your ability to earn an income that is most important in shaping your financial future. Statistically, two thirds of working Australians will suffer an injury or illness that will sideline them for 90 days or more. The majority of these people would not be able to pay their mortgage or meet car finance and other loan commitments without adequate income insurance.
... compare rates & options ...


Business Insurance Articles

The Importance of Cyber Security: Protecting Your Small Business
The Importance of Cyber Security: Protecting Your Small Business
Cyber security refers to the practices and technologies designed to protect computers, networks, programs, and data from unauthorized access, attacks, or damage. It's a crucial aspect of modern business operations, and understanding its importance is vital for all businesses, especially small ones. - read more
Essential Insurance Coverages You Need to Protect Your Small Business
Essential Insurance Coverages You Need to Protect Your Small Business
Insurance is a vital component for any small business. It acts as a safety net, helping to protect your enterprise from unexpected financial losses. Whether you run a retail shop, a consultancy, or a manufacturing unit, having the right insurance coverages can make the difference between thriving and merely surviving. - read more
Assessing the Insurance needs of your Australian Labour Hire firm
Assessing the Insurance needs of your Australian Labour Hire firm
As a labour hire firm, it is important to assess your insurance needs to protect your business from the risks it faces. Assessing your insurance needs involves identifying potential risks specific to your industry and taking steps to mitigate them. With the right coverage, you can protect your employees, clients, and business assets from unforeseeable circumstances, which could otherwise result in costly lawsuits or accidents. - read more
The Importance of Adequate Insurance Coverage for Your Small Business
The Importance of Adequate Insurance Coverage for Your Small Business
For small businesses, navigating the intricacies of sustainability is a critical task that can be made more manageable through the prudent use of business insurance. Understandably, many small business owners prioritize immediate operational concerns over seemingly discrete matters like insurance. However, as we will explore, insurance is not a mere formality—it's a vital backbone to enduring success. - read more
How to Lower Your Insurance Costs Without Sacrificing Coverage
How to Lower Your Insurance Costs Without Sacrificing Coverage
Insurance costs can be a significant expense for businesses in Australia, and it is crucial to understand how they can affect your bottom line. With premiums on the rise, many business owners are looking for ways to cut costs while maintaining the coverage they need to protect their operations. - read more

Knowledgebase
Indemnity:
A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.

Quick Links: | Business Insurance | Business Insurance Quotes | Commercial Insurance | Public Liability Insurance | Small Business Insurance | Professional Indemnity Insurance | Business Insurance Comparison | Cyber Insurance | Business Interruption Insurance | Business Insurance Australia | Workers Compensation Insurance
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.