Wednesday, September 15, 2010

Watch Them All Run For Cover

Would you go to a dentist if you were suffering from a severe guts ache?

So why would you go to a bank to organise your house insurance?

Trading banks have been dicking around clipping the ticket on gullible clients' insurance business for years. They tried it with personal superannuation and failed. Who remembers ASB's massive advertising campaign claiming their staff were paid salaries therefore somehow clients would be better off? Trouble was their clients just couldn't seem ever to see any profits in their accounts and after three or four years ASB gave the game away.

This sorry story of ANZ incompetence demonstrates the need to have a specialist broker look after your house insurance. It is not something which you can glibly 'clip on' to the loan transaction.

Johnson said ANZ had organised their house insurance through Tower.

He said ANZ had asked the house's size, but when the couple said they did not know, the bank said it would find out for them.

Only 120sqm were recorded on the policy. It was not until a friend visited after the earthquake that they realised the house was much bigger.



In Adolf's view, on the face of information thus far available, the ANZ should be liable. It has given professional advice in an area for which it has no expertise and which is outside its competence.

9 comments:

kevin said...

Anecdotal is always a problem... here's hoping the guy has something on paper from ANZ or a name.

alex Masterley said...

Good point Adolf.
Many of the policies of insurance my clients take out for their houses are obtained through their bank, and only on the strength of a phone call during which the barest details of the dwelling are provided.
I've always recomended a direct approach to an insurance company or a reputable broker, as the former know the questions to ask, as do the later with the added benefit of professional indemnity cover if things go wrong.
The result of the banks insurance cock up will be similar to the ANZ-ING funds debacle in my view.

pdm said...

I used to place all of my House and Contents clients with Vero. While they would issue cover over the phone they were on my hammer if a signed proposal was not in within about 10 days. They also queried house sizes regularly.

I always told my clients that `the cost of the premium becomes insignificant when you have a major claim'.

kevin said...

and of course the bank gets a commission on the insurance arrangement...

Anonymous said...

would you prefer they did it for free kevin, as a public service or something?

kevin said...

anon... Banks/free? "Would you like life insurance with that sir? Maybe some car insurance as well". "I don't know anything about the product(s), but I get a big tick, a bonus (maybe) and the bank gets a commission". Bank staff are pushed to sell. Really pushed. (Think ING) I don't think they do the customer any favours with product, price or service.

Anonymous said...

What's wrong with getting paid a commission to transact something?

kevin said...

anon. The issue for me is "product knowledge/price/service"... not commission. The above only becomes an apparent when a claim is actioned.

kevin said...

and now I have the ANZ gold Visa card 'free travel insurance' issue. I have paid for my wifes travel on my/our joint Visa card, only to be told that she doesn't qualify for the 'free travel insurance' because she didn't pay for it on her/our joint Visa card. I do qualify but I'm not travelling. The company have asked for my full personal details (even though I'm not travelling). My travel agent has told me other folk have been accepted quite happily after paying with a joint Visa card. payments. This is an ANZ nominated partner company called Chartis Insurance who send me un-named emails. They reluctantly sent a pdf of the actual policy. An interesting exercise.