Disclosure is no duty – it’s about being honest
In our opinion many people out there don’t really know what they are signing when they enter into a contract for insurance, or for that matter any other agreements for the provision of goods and services. Signing a contract is all so mundane these days, who really reads what they are signing? What does it mean anyway?
Your duty to disclose is unavoidable. Every time you sign an agreement or contract, the provider company expects that you have provided a full and accurate record of all information that they have specifically asked about. It is your responsibility to be transparently honest; and when you sign the dotted line you are accepting full responsibility for any consequences if you have not been completely frank.
When it comes to answering a question don’t bother asking yourself whether or not it might or might not be important enough to mention, let the insurance company decide that. All the information that you provide is strictly confidential.
The consequences of non disclosure will usually come at claim time (and/or when you are next applying for insurance cover) when your insurance history is checked against any further information provided for the claim.
The worst case scenario is that you will not be paid for your claim and your contract will be made void for non disclosure. This means that all your premiums are refunded from the start of the contract as though you cease to exist. Further, and of far more concern is that you will not be able to get further insurance through that original provider or any other insurance company.
Let’s face it, it is about being honest, not about trying to get a windfall from some faceless profit driven corporate company. And don’t panic if suddenly you recall something you forgot to mention originally, just call your adviser or the provider company and let them know. It is never too late.
The same applies for contents insurance claims. Ever heard the story about being paid out for an insurance claim i.e. X lost their watch and then found it a few months later. What a windfall!
In this type of circumstance you will be required to either pay the money back or give the insurance company the new replacement item. Be honest and do the right thing or be prepared to risk losing your insurance cover.
When dealing with Thorners you are required to tell us of anything you know, or ought to know, that may affect the decision of a prudent insurer whether to accept your insurance, or renew your policy, and if so, on what terms. If you have not disclosed all material information, or if you have misrepresented that information, then an insurer is entitled to cancel the policy retrospectively from the beginning.
In simple terms you need to tell us about any convictions, traffic offences and claims or other material information and keep us informed so that we can make sure your policies are valid at all times.
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Click here to learn more about Thorners Life Insurance Services or Call Us on (04) 528 8088
KiwiSaver Statistics – one year on
After just one year of KiwiSaver some amazing membership statistics are…
- 673,942 members at the end of June 2008;
- 429,621 opted in via an employer or provider;
- 244,321 automatically enrolled;
- 27% of members are under 25 years of age;
- The was $903m invested in 54 different KiwiSaver schemes; and
- In the first 11 months, the Government subsidies totalled $497m
Make the call today to see how we can answer your KiwiSaver questions.
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KiwiSaver Mortgage Diversion
KiwiSaver Mortgage Diversion is almost with us. Many KiwiSaver members become eligible after contributing for 12 months and final sign off by the Bank’s and Government is expected shortly.
Mortgage Diversion will allow up to half of a members personal KiwiSaver contributions to go towards paying off the personal mortgage on their home, so long as the mortgage provider and their chosen KiwiSaver provider offer this facility.
Not all mortgages will qualify for Mortgage Diversion under KiwiSaver regulations, e.g. currently KiwiSaver contributions cannot be diverted into a mortgage that contains a revolving credit facility or a mortgage secured over a property held in a family trust. It is also limited to a saver’s principle residence (i.e. the family home). Secondary properties like holiday homes, investment properties and LAQC’s are excluded.
Click here to learn more about Thorners Life Insurance Services or Call Us on (04) 528 8088
Increase in fires caused by multi-boxes!!
Recent claims data has shown Multi-boxes are a convenient way of providing electricity to applicances and generally speaking are relatively safe. However, they do pose a danger when overloaded or over-used.
Wear and tear on multi-boxes can be reduced by limiting the number of times plugs are taken in and out. Multi-boxes should never be used if damaged or not working properly. If possible buy multi-boxes with shuttereed outlets and an installed RCD.
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Case Study – Health Insurance
Roger is 40, has two young children and a wife to support. When undergoing his routine medical for his truck drivers licence he was found to have high blood pressure. Eight months later Roger started experiencing angina. Over the next 18 months he had an angiogram, angioplasty and eventually bypass surgery and the total claim to date has been $60,000.
He had a nil excess and has had the peace of mind knowing all costs would be covered and that treatment was available in private hospitals without the burden of the public health system waiting list.
Don’t let an illness or injury steal your home.
Call us on 04 528 8088 to review your level of risk protection today.
Click here to learn more about Thorners Life Insurance Services or Call Us on (04) 528 8088
Case Study – Living Assurance
In July 2002 Mary was a 30 year old healthy librarian who had no need for extensive cover but was looking for peace of mind so she added $75,000 Living Assurance cover to her protection plan. Two years later during a routine blood test the presence of leukemia changed her world. She underwent treatment and the insurer paid her the $ 75,000 which has been used to make her life more comfortable.
Click here to learn more about Thorners Life Insurance Services or Call Us on (04) 528 8088
Case Study – Disability Income Protection
Mark is an auto glazier who started his own business after gaining 15 years industry experience. After trading for one year he suffered a lower back injury which put him out of work.
Through his Risk Protection Plan, Mark was entitled to an agreed value benefit of $2,000 per month, after a six week waiting period. Initially the payment was made less his ACC benefit so he was getting $1,374 per month and when the ACC portion stopped, the insurer increased their payment to $2,030 per month.
Mark is unable to return to work as an Auto Glazier and the insurer has since provided him with a vocational retraining benefit which covered a Polytech computer course.
Click here to learn more about Thorners Life Insurance Services or Call Us on (04) 528 8088
Case Study – Life Cover Benefit
Petra was 41 years old. She worked in the financial industry and part of her employment package had life cover provided by an employer chosen insurer. In May 1997, she went to the doctor as she had been feeling unwell for some time. The doctor diagnosed her condition as cancer of the gall bladder and with it being terminal she was unlikely to to live longer than twelve months.
The doctor provided the insurer confirming the terminal nature of her condition and the insurer paid her a lump sum terminal illness benefit of $92,000, which equated to the total amount of her life cover.
Click here to learn more about Thorners Life Insurance Services or Call Us on (04) 528 8088
