CommInsure Indemnity IP Claim Initiative Extended

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CommInsure has extended by three months an earlier temporary change to the way it calculates monthly benefits for indemnity income protection policies, where the claimant’s income has reduced as a result of Covid-19.

In a message to advisers last week, the insurer says the temporary changes have now been extended for claimable events occurring between 11 March 2020 and 31 December 2020 (previously 27 September 2020) “…where your customer’s income has reduced as a result of Covid-19” (see: CommInsure IP Indemnity Benefit Initiative).

The insurer is temporarily applying a different method of calculating the pre-disability income (PDI) definition for indemnity IP policies. When it is calculating the monthly benefit for eligible customers, it will use the greater of the customer’s average monthly income for:

  • The 12 consecutive months immediately preceding the commencement of disablement, or
  • The latest financial year immediately preceding the commencement of disablement.

It provides an example for an eligible claim where, if a customer was injured or became ill on 28 October 2020, it will calculate PDI using the customer’s average monthly for the consecutive 12 months or from income earned from 1 July 2019 to 30 June 2020, whichever is the greater.

It notes the temporary change only applies to indemnity IP contracts.