Source: Radio New Zealand
The ombudsman said it’s important to know the consequences of making a false statement on an insurance claim. 123rf
The insurance ombudsman is urging customers not to embellish claims for flood damage.
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme), which reviews insurance complaints, said with more frequent flooding events, people could risk their recovery by falsifying statements.
Insurance & Financial Services Ombudsman, Karen Stevens, said it’s important to know the consequences of making a false statement on an insurance claim.
“Providing false information can result in your whole claim being declined, not just the items that were inaccurately included. And if you’re found to have committed fraud, then you’ll likely not be able to get insurance in future,” she said.
Stevens said if people are unsure about the details, they should check before submitting their claim.
“Its important to remember that insurance relies on trust. Honesty is always the best policy-especially when so many are relying on insurance to recover from natural disasters,” Stevens said.
The warning follows a recent investigation where an Auckland woman’s claim for flood-damaged household contents was declined.
IFSO Scheme said after the Auckland floods in January 2023, the woman claimed that 43 household items-including large pieces of furniture-had been damaged and thrown away.
But, the insurer’s investigation revealed that some of these items were actually stored at a nearby storage facility.
When questioned, Heather provided a revised list with only 10 items.
The insurer’s findings were that the false statements had been made in support of the claim and, under the policy’s terms, declined the woman’s claim and cancelled her policy.
The customer subsequently made a complaint to the IFSO Scheme, asking them to review the case.
She claimed family members had helped move and dispose of the household items and that she had not visited the storage unit herself.
Despite that, the IFSO Scheme found it was “deliberately reckless” for the woman to claim the items had been thrown out and seek compensation without taking reasonable steps to verify this.
The complaint was not upheld by the IFSO Scheme.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
