Case Studies

The following case summaries highlight common issues and consumer tips. Cases can be filtered by subject below and names have been changed to protect confidentiality. Access to the full case study database is available for IFSO Scheme Participants in the Participant Area.

Premiums paid were more than the funeral cover was worth

Consumers need to understand that, sometimes, they will pay more in premiums for funeral cover than the cover is worth

Mrs Parata* arranged funeral insurance cover for her husband, for a sum of $20,000.
Premiums Life Insurance Funeral Insurance

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Methamphetamine contamination confusion

Confusion over methamphetamine contamination standards can have severe consequences for some landlords.

Through a financial adviser, Mr and Mrs Singh* held insurance on a rental property. In June 2020, Mr...
contamination House and Contents Insurance House landlord methamphetamine

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Tenant turns house into animal refuge

Regular property inspections can reveal issues before they turn into big problems.

The IFSO, Karen Stevens, warns landlords to ensure tenants abide by the conditions of the rental. In...
landlord tenant pets House and Contents Insurance houseandcontents

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Request to reduce life cover

Insurers and financial advisers must act with reasonable care and skill.

Shortly before he died, Sam asked his financial adviser to reduce his life insurance cover from $268,000 to $100,000.
Life Insurance Financial Advisers

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No home, 4 loans, responsible lending?

Lender responsibilities aim to protect consumers against substantial hardship.

Ann's house was demolished and she told her lender she couldn't repay her 4 loans. She later received a repossession notice.
Loans & Credit affordability Lending

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Stress after the storm

Independent evidence can help to progress insurance claims.

After a claim for flooding and storm damage was accepted, issues and delays continued for a stressful year.
House and Contents Insurance temporary accommodation flood

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$189K romance scam

Financial Advisers must exercise reasonable care and skill.

When Andre, a quadriplegic, requested 5 withdrawals from the family investment, his adviser followed instructions.
Financial Advisers

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$43K loan, ute repossessed

The CCCFA sets out lender responsibilities for consumer protection.

Charlie, who had terminal cancer, couldn't work or pay off a $43,000 loan. Charlie’s ute was reposessed.
Loans & Credit Lending

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Cancer, non-disclosure

Your full medical history must be disclosed when you apply for insurance.

Jin had life and trauma insurance. After his stage 4 colon cancer diagnosis at age 31, he made a claim.
Life Insurance Non-disclosure

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Covid-19: cancelled travel

Check your exclusions. Most travel policies exclude global pandemics.

Barry cancelled his Bali trip due to Covid-19. His insurance claim was declined due to the pandemic exclusion.
Travel Insurance Travel Covid

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Excess dog damage

An excess is paid when claims are accepted. If there is more than one event, more than one excess can be applied.

Viv’s claim, for carpet damaged by dog vomit and diarrhoea, was accepted. But three policy excesses were applied.
House and Contents Insurance pets

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Son crashes car, no cover

Check your policy for exclusions. Insurers must act with reasonable care and skill.

Cora's car insurance claim was declined because her son was excluded as a driver. But Cora said he was covered.
Vehicle Insurance

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