Life insurance industry under Parliamentary scrutiny
Entities providing life insurance are to come under the spotlight during a Senate inquiry.
Additional terms of reference have been added to the Economics Committee’s Scrutiny of Financial Advice inquiry following revelations surrounding CommInsure’s treatment of some of its clients.
The Commonwealth Bank has admitted it needs to review the criteria it uses in determining whether a person has a valid claim to a payout for a medical occurrence such as a heart attack.
The Nationals Senator for New South Wales John Williams has initiated the additional terms of reference to give Australians an opportunity to make a submission on their dealings with their life insurance company, particularly if they feel they were wrongly treated or in dispute over a payout.
Senator Williams said the inquiry will examine whether life insurance companies deliberately try to avoid meeting claims, whether a code of conduct is needed and what role ASIC does or can play in reforming the industry.
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