When 12 months is not 12 months…

The insured arranged travel insurance and paid an additional premium to specify his hearing aids as part of the policy.  While travelling overseas the hearing aids were lost and a claim was made on the insurer. As proof of ownership and value the insured supplied the original invoice for the hearing aids, which was dated 12 months 3 weeks prior to the date he took out the policy.

The policy required the insured to provide an invoice dated within 12 months prior to the date he took out the policy and therefore the insurer refused to pay out under the claim.  The matter went to the Insurance Ombudsman who held that an original receipt dated 12 months and 3 weeks was sufficient to determine proof of ownership and the value of the insured’s property to the reasonable satisfaction of an insurer. This was despite the fact that it was 3 weeks outside of the 12 month limit.

The insurer was not acting reasonably in applying the 12 month limit and the insured was entitled to be paid the full value of the hearing aids.

Alan Knowsley

Insurance Lawyer
Wellington