New private health insurance brand, AIA Health Insurance, will provide cash refunds to up to 40,000 members who face restricted access to extras services due to Covid-19.
A statement from the insurer says the introduction of a cash refund is industry leading and protects the value of extras cover.
It says it’s being launched by AIA Australia to recognise that many members may not be able to receive the full benefits of their extras cover because of limitations to key services such as dental, physio and optical since the pandemic started.
AIA Australia Chief Health Insurance Officer, Tim Tez says this is the right thing to do for its members given the restrictions and disruptions to services during Covid-19.
“By taking this action, we’re putting money back in our members’ pockets to support their financial well-being during this challenging time.”
The insurer says the initiative will see members receive a minimum 50 percent refund on their extras policy from 1 April 2020 to 31 December 2020, less any claims paid for extras used by the member.
It notes that this period ensures members are financially protected from any further disruptions to extras services for the remainder of the year.
Members are also being given the opportunity to enhance their refund amount through their engagement with AIA’s health and well-being program, AIA Vitality.
It says that in recognition of the benefits of members living “Healthier, Longer, Better Lives“, a refund of 100 percent will be provided to Platinum AIA Vitality members and 75 percent for Gold and Silver members.
Total refund amounts will be calculated at the end of the year and premiums returned directly to members.
“While it’s impossible to know how quickly extras services will return to normal, we wanted to demonstrate our commitment to members by making this decision now rather than waiting to see how demand for ancillary services bounces back,” says Tez.
As an example, a Platinum AIA Vitality member who makes no extras claims from April to December this year would receive 100 percent of their extras premium back – which, he says, is a big saving.
“….we wanted to show how we are going above and beyond at a time when Australians are assessing the value they get from their insurance and the take up of private health insurance is in question”.
AIA Australia announced the launch of AIA Health Insurance in March. The new brand replaced AIA Australia’s previous offering, myOwn Health in partnership with GMHBA.
The company says the cash refunds are part of AIA Australia and AIA Health Insurance’s broader pandemic response which includes Covid-19 cover extension, financial hardship measures and increased health and well-being support.
