AIA Australia has commenced the first in a two-part product update for its Priority Protection range.
Being released in two stages across April and May, the product changes are driven in part by the implementation of new Unfair Contract Terms (UCT) legislation which took effect from 5 April 2021.
Unfair Contract Terms
The insurer has provided an excellent summary document for advisers, part of which includes an explanation of the changes that have been made to policy wording and definitions in order to comply with the new UCT laws. It lists key phrases which have been removed – wording which appears to give the insurer unilateral decision-making or is unclear. These phrases include language such as:
- ‘acceptable to us’
- ‘imposed by us’
- ‘to our satisfaction’
- ‘at our discretion’
- ‘we are satisfied’
- ‘must be satisfactory to us’
- ‘intend to adjust future payments’
- ‘not limited to’
- ‘our conditions’
- ‘we consider’
- ‘we accept’
The adviser summary lists various policy changes and clarifications to which such language, now removed, has previously been applied, including:
- Changes and clarifications to IP claim offsets
- Clarification on capability clause for IP partial disability
- Clarification on Pre disability income (IP Core)
- Clarification on IP Rehabilitation Expenses benefit and Rehabilitation Incentive benefit
- Exclusions IP – incarceration exclusion limited to accidental injury or mental illness
- Exclusions – removed ‘wholly or partially’ when referring to intentional self-inflicted injury
- Clarifications to Complimentary Interim Cover
- Other changes/clarification on general terms & conditions
- Clarified how to contact us (via mail, fax, email or any other manner permitted by law) where appropriate
Other changes effected due to UCT legislation include:
- Removal of 30-day reporting period for Accidental HIV Infection and Occupational Acquired Hep B or Hep C infection
- Removal of redundant requirements from Blindness definition
- Minor change to Loss of Speech
- Name changes to multiple medical terms
In its summary, AIA notes it has moved as much as possible into the main body of its PDS/policy document, any descriptions in its policy terms which relate to how much is payable out of Medical Definitions.
May 2021 changes
Future Riskinfo reporting wil outline key changes which will apply to the May product update, which will include changes to the insurer’s Income Protection CORE product, together with a range of premium and loyalty discount changes.
In the meantime, click here to access the newly-released AIA Priority Protection PDS, effective from 3 April 2021.