Licensee Synchron has launched an animated video, explaining the risks of non-disclosure on insurance applications to an adviser’s clients.
Synchron independent chair Michael Harrison said the dealer group developed the video to help protect advisers against negligence claims due to instances of non-disclosure.
“Non-disclosure is a major issue in the industry and one of the main reasons client claims are declined,” Mr Harrison said.
“We have even heard of an instance where an adviser is being sued for negligence because his client says he did not properly explain his duty of disclosure - despite the client signing an acknowledgement confirming his understanding.”
Mr Harrison said clients may also not understand that they have a legal obligation to tell their insurer anything that might affect their insurance application under the Insurance Contract Act.
“The video we have developed helps our advisers get that message through to clients and also saves them from having to repeat the same thing over and over to each client,” Mr Harrison said.
“It demonstrates that while disclosure might adversely affect the price of premiums, it is far better to pay more than take the risk of a claim not being paid out due to non-disclosure.”
Praemium has posted record inflows in its September 2021 quarterly update. ...
More advisers will look to acquire books of business as others leave the industry, a new survey has revealed. ...
Assets under management of the global top 500 asset managers climbed to US$119.5 trillion in 2020. ...