Importance of Keeping Notes Highlighted by FSCL

The importance of keeping clear written notes of client interactions is highlighted in a recent case handled by the FSCL dispute resolution service. It involved the parents of a toddler who thought their child was covered by their health insurance. They discovered the child was not listed on their policy when they made a claim.

Although the case happened before the current licensing regime came into force, the FSCL ombudsman says that if it had been about advice provided today, “…we may have found that the adviser’s brief records were not adequate”.

The complaint involves parents Ihaka and Anahera who said they had asked for their second daughter to be added to their health policy shortly after she was born, and that the ongoing correspondence with their adviser showed “…regular contact about her assumed insurance”.

…The adviser’s diary notes showed she had followed up with Ihaka for the birth certificate on at least two occasions…

They told FSCL they only discovered their second daughter did not have the expected cover after she developed a health condition that required treatment.

Ihaka and Anahera believed the adviser was negligent for not ensuring their daughter had cover in place, particularly as they were concerned their daughter would now be uninsurable.

The adviser told FSCL she acted with reasonable care and skill to inform the parents of their options, and that she explained the steps Ihaka needed to take for cover to be placed. The adviser said there was no cover in place due to the birth certificate not being provided and the application form not being completed.

The FSCL ombudsman states that at no point did the adviser tell Ihaka that his (second) daughter was insured – “…in fact, the evidence showed the adviser had told Ihaka more than once that his daughter was not covered”.

“Ihaka said that he was not told he would need to provide the birth certificate, but there was evidence to the contrary,” states the ombudsman.

…The adviser had fulfilled her duties and obligations…

“The adviser’s diary notes showed she had followed up with Ihaka for the birth certificate on at least two occasions.

“These were not full diary notes, but they were adequate to show it was more likely than not that the adviser had asked Ihaka for the birth certificate on several occasions. Also, Ihaka had provided the birth certificate for his elder (first) daughter, so had been through the process before.

“The adviser could not make Ihaka provide information or complete forms. The adviser had fulfilled her duties and obligations by providing Ihaka and Anahera with the forms and information that they required in order to obtain cover for their daughter.”

FSCL advised the parents to discontinue their complaint.

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Read the full FSCL decision here.