Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Survey highlights trust issues

Survey highlights trust issues

Men are more likely than woman to try to cheat their insurer – ironically , they also have the least faith in their insurer doing the right thing.

Southern Cross Travel Insurance (SCTI) found that:

- 21% of men felt that with any type of insurance, it was acceptable either ‘all’ or ‘some of the time’ to inflate the amount claimed to cover a policy excess

- 11% of men felt it was ok to claim for pre-existing damage to an item that occurred prior to travelling.

By comparison, 17% of women felt it was ok to inflate a claim, while 9% thought it was ok to claim for pre-existing damage.

SCTI CEO Craig Morrison said most people don’t think that this form of dishonesty is fraud.

“We regularly see claims that have been inflated. It’s something we have trained experts watch out for. People don’t realise that getting caught out could result in a void policy or even a criminal record – with serious implications for getting any future insurance coverage.

“The worst thing about this type of behaviour is that, you know when you’re being honest but, unless we have the documentation to back up your story, how do we? As a result, we are forced to look at all claims more carefully and in doing so ask a lot of questions.”

The flow-on effect to having this level of scrutiny applied to claims is reflected in how customers feel about the claiming experience.

The survey found that 42% of men thought travel insurance companies either ‘always’ or ‘most of the time’ looked for excuses not to pay valid claims, compared to 31% of women.

Morrison said, “Although it’s great to find that the vast majority of people would be honest at claim time, it’s disappointing that so many lacked faith in travel insurers.

“Firstly, for an insurer to attempt to avoid paying a valid claim is ethically wrong, but secondly it breaches the legal contract the insurer has made with their customer. Customers should be assured that if the claim fits within the terms of the policy the insurer must pay out - there’s no question about it.”

“Secondly, the key obligation on the part of the insured is evidence. Without appropriate evidence of your loss we will struggle to be able to pay out your claim. When it comes to providing proof of a mishap, don’t delay.” Morrison says, “If your credit cards are stolen, cancel them - then there is a reported record of the incident. Do your best to get a paper trail. If your bus company cancels and you need to pay for another night’s accommodation, or miss a connecting flight, try to get a cancellation email or even a text to show us.

He said the core purpose of the survey was to find out if people really understood the claiming process. “It was a revelation to us that 55% of those surveyed thought it was ok to claim the replacement cost, rather than the current value of a lost or damaged item. So if you thought you were going to get a brand new laptop, rather than the current value of your five-year-old one, it’s natural you’re going to be disappointed in your policy.”

Morrison says the key principle underlying all travel insurance policies is “could this event or situation reasonably be considered unexpected? Travel insurance is there to cover the unexpected. If you leave your iPhone unattended on the beach while you take a swim, well it’s not unexpected that it could be stolen.”

“We strongly urge people to have a really good read of their policy before they purchase. If they have any questions, we ask them to get in touch.

Morrison says, key points to remember are never leave your personal belongings unattended, even for a moment, and, of course, ‘nothing good happens after midnight’.”

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news