Consumer Advice

Consumer Information

Overseas travel insureance

Insurance situation arising from travel
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Buying insurance

Cover your property losses
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Guidelines for resolving disputes

This is how member companies resolve disputes.
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Commercial insurance

Insure against businessesdisruption
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Motor insurance

Motor vehicle insurance can cover you against accidental loss or damage to your vehicle,
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Personal insurance

The types of cover available under personal insurance
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Marine insurance

Cover for commercial vessels and personal pleasurecraft
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Insurance fraud

An insurance claim is considered fraudulent when it is based on facts that are simply untrue
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Fraud case studies


Case A

A claimant said his jet boat had caught fire and sunk without trace. There were no witnesses. He claimed the fire was caused by 96 unleaded petrol. Enquiries revealed he had some major financial problems. When investigators visited his home, they found the jet boat safe and sound, on its trailer in the garage. The claim was denied and the jet boat owner is now being prosecuted.

Case B

A man lodged a $69,000 claim for the theft of his vehicle, which also included a substantial amount of valuable personal property. Investigations revealed he had increased the sum of his insured property one week before the loss occurred and that his financial situation seemed unsustainable - he had monthly commitments well in excess of his income. His proof of ownership included photos of various items, many of which did not show enough detail to substantiate their alleged high value (for example, a photograph of a bicycle partly obscured by a blanket, with an alleged value of $6,000). Further investigations revealed he had six convictions since 1989 for shoplifting, burglary and obtaining property by false pretences. The claim was declined on the basis of non-disclosure of the criminal convictions. Investigations have not uncovered anything to implicate the insured in the theft.

Case C

A Wellington claimant flatted with four friends. They were burgled and a $5,000 claim was presented. The size of the claim raised suspicions with the insurer and enquiries later confirmed that most of the property belonged to the uninsured flatmates. When asked for an explanation, the claimant said she had felt sorry for her flatmates.

Case D

A 40-year-old mother of two had a motor vehicle accident while towing a caravan. Routine enquiries carried out in processing the claim revealed some undisclosed statistics: she had over 40 convictions for shoplifting, fraud and assault and had just got out of jail. Her extensive claim history is now being re-examined.

Case E

An 18-year-old policyholder lodged a claim for her car, stolen from outside a community hall. Investigation revealed the claimant had driven her vehicle after a function at the hall, left the road and collided with a power pole. She panicked and left the scene, later deciding to report the vehicle as stolen. The claim, for $6,500, was declined and a formal complaint lodged with the Police. Investigators' costs of $1,600 were paid by the insurance company.

Case F

A claimant presented a burglary claim for an extensive list of CDs. She was unemployed. When the claim was investigated, the client immediately withdrew the claim, saying she was too busy to assist with the insurer's enquiries.

Case G

A young claimant said his car was stolen overnight. It was recovered, damaged, by the Police the next day. The claimant said his three friends could confirm his movements that night: in the event, only two of the three would back him up. It was found that all four had been in the car when there was an accident. The driver had thought he could avoid prosecution by saying his car was stolen. A meeting with the claimant and his parents resulted in a voluntary visit to the Police so his friends wouldn't get in trouble.

 

 

 

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