Recent Complaints to Insurance & Savings Ombudsman Online

MEDIA RELEASE

27 June 2013

Recent Complaints to Insurance & Savings Ombudsman Scheme now online

Summaries of complaints resolved by the Insurance & Savings Ombudsman Scheme Inc. (ISO Scheme) for January to March 2013 are now available on its website www.iombudsman.org.nz.

Summaries of the 64 complaints which have been resolved between January and March this year are available on the ISO Scheme’s website, www.iombudsman.org.nz.

Complaints to the ISO Scheme continue to include complaints about insurance claims in Canterbury. Karen Stevens, Insurance & Savings Ombudsman, explains “The range of complaints we have seen reflect the huge effects of the earthquakes on individuals and businesses in Canterbury. A number of the complaints dealt with in the first quarter concerned businesses in Canterbury, from business interruption (Business interruption), to commercial property (commercial property) and loss of rent (loss of rent) claims.”

In addition to complaints about earthquakes, Ms Stevens said “A number of the case studies served as a warning to consumers about telling the truth when making claims. One case study shows how a claim for items not taken when the consumer’s handbag was stolen, resulted in her house and contents cover being cancelled by the insurer (see fraud). Not only did this have very serious consequences for the consumer’s current policies, but it is also likely to affect her ability to get insurance in the future” (see also fraud 1).

While many people’s house insurance policies are only now changing to a “sum insured” basis, the ISO Scheme has considered a number of cases concerning what is covered by the sum insured. Ms Stevens explained, “One case we dealt with earlier this year demonstrates the misunderstandings people may have about what the total sum insured will, or will not, cover in the event of a total loss. In this case (sum insured), the expectation was that professional fees and demolition costs were in addition to the total sum insured. However, in almost all cases, the sum insured will be the total maximum amount payable under the policy for the loss.”

For more information visit www.iombudsman.org.nz

ENDS

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