Legal action has been filed against a 160-year-old banking, superannuation, and insurance company for allegations of unfairly delaying insurance claim assessments for clients with disabilities and severe illnesses.
Finance giant AMP has also been charged with “doctor-shopping,” subjecting customers to countless independent medical assessments for conditions that have already been thoroughly diagnosed.
Scott Kidd, of Newcastle, who is suffering from a rare form of leukaemia, has filed a case against AMP in the NSW Supreme Court over a delay in processing his total and permanent disability (TPD) claim, 7.30 reported.
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Kidd, who was diagnosed with chronic lymphatic leukaemia in 2008, told the news agency: “I really don’t know why they’re delaying it. Maybe they’re waiting until I die.”
Upon his doctors’ advice, Kidd stopped working in 2013. For two years, he received income protection payments from AMP, and in 2015, he lodged a claim for his $750,000 TPD cover. However, AMP has still not decided whether Kidd is qualified for a payout.
Kidd said that if AMP doesn’t pay up, he would be forced to sell his house.
Josh Mennen, a Maurice Blackburn lawyer representing Kidd, said AMP was putting an unnecessary financial and emotional strain on his client.
“It is a substantial sum of money, so the insurer is entitled to investigate the claim and make sure it’s satisfied on liability,” he said. “But we say they ought to be satisfied on liability and should’ve paid a long time ago.”
In a statement to 7.30, AMP apologised for the delay in processing Kidd’s application, citing “receipt of conflicting information,” as part of the reason for the delay.
“We are awaiting specialist medical reports and will accelerate final determination once the information has been received,” it said.
Another customer, North Queensland-based Rebecca Ryan, who was diagnosed with interstitial cystitis, was also preparing to take legal action against the insurer for an almost five-year delay in processing her TPD claim, the report said.
However, after being contacted by 7.30, AMP said Ryan’s claim was already approved last month. The decision was passed to her superannuation trustee, but the company had not yet informed Ryan or her clients.
AMP also apologised for the delay in processing Ryan’s claim.
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