Cover for job redundancy is to be dropped by Partners Life, and the insurer may temporarily exclude cover for COVID-19 in some of its policies.
The insurer is anticipating an increase in the number of claims for redundancy across a range of industries as a result of the drop in tourism and 14-day self-isolation requirements for people arriving in New Zealand.
At the moment the country’s biggest earner – tourism – is being hit hard. There are eight confirmed coronavirus cases in New Zealand.
In a statement, the company says: “Partners Life will not be accepting any new applications for the redundancy cover option under MRC and HEC benefits until further notice.”
It says that for infants, children and healthy adults, the medical impact of contracting coronavirus “…does not appear to be discernibly different from any previously known forms of the flu virus”.
Partners Life will not be accepting any new applications for the redundancy cover…
“The most significant impacts seem to have been occurring in vulnerable adults, being those with serious underlying health issues and/or those that are over the age of 70 with age related frailties,” it says.
However, if the medical risk of COVID-19 increases then it could be excluded from new policies issued by the firm.
“[If] we determine there could be an increased risk of COVID-19 related claims for new applicants, our initial response would be to automatically exclude COVID-19 related claims from those types of risk benefits…e.g. private medical cover, or monthly disability benefits etc,” says the insurer.
“This exclusion would effectively be a ‘mandatory special term’ which applicants must agree before cover will be issued.”
However, once the pandemic has run its course, Partners Life would remove the COVID-19 exclusion and let clients know.
…existing Partners Life clients are fully protected against any claimable major health interruption arising from COVID-19.
The company says existing Partners Life clients are fully protected against any claimable major health interruption arising from COVID-19.
It also advises that as each insurer has its own approach to managing the pandemic, advisers and their clients should take a cautious approach if considering moving existing cover from one insurer to another.
“It is important to avoid the chance that COVID-19 may not be fully covered under any replacement benefits which are to be issued during this pandemic,” says Partners Life.
Download the full Partners Life briefing here.