Public Defender: When is your sister no longer your relative?

WHEN is your sister no longer your relative? The answer, in the insurance world, is apparently when she turns 75. LIVE LEGAL Q&A AT 1PM

Alex Fraser who is fighting to get his money back from a cruise company / Picture: Brett Costello

WHEN is your sister no longer your relative? The answer, in the insurance world, is when she turns 75.

Eighty-seven-year-old Alex Fraser bought a $2900 cruise in December and paid another $200 for Vero travel insurance meant to cover him for situations including being unable to travel due to a relative’s illness or death.

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In late February, days ­before he was due to depart, Mr Fraser’s sister Jean Docherty, 81, was hospitalised.

He cancelled the trip. She died soon after.

Mr Fraser made a claim and, as requested, provided a medical certificate and doctor’s letter to prove his sister had been in hospital and died.

But his claim was rejected.

Vero wrote: “We acknowledge the late Jean Docherty is your sister and would be considered a relative under the normal dictionary meaning of the word, (but) ‘relative’ is specifically defined within the policy wording”.

The relevant clause is found on Page 59 — yes, 59 — of the policy’s product disclosure statement:

“Relative means an immediate family member … under the age of 75.”

How could Mr Fraser have possibly missed it?

“It’s out and out discrimination,” he said.

Councils on the Ageing (COTA) CEO Ian Yates said increased regulation had made the length of insurance policy booklets “absurd”.

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A clause of this type “should be disclosed much more prominently to someone of that age”, said Mr Yates, who lobbies on behalf of older people.

“There should be a one- or two-page document.”

Public Defender has learned that Vero’s owner Suncorp plans to overhaul its travel cover.

“We are about to launch a review and upgrade of our range of travel insurance policies, and the policy ­restrictions involved here will definitely be a part of that ­review,” a spokesman for Suncorp, which also owns GIO and AAMI, said.

And there will be further “discussions” with Mr Fraser.

It wasn’t that long ago that someone such as Mr Fraser (inset right) would have struggled to even get travel cover. So things have improved, with more insurers excluding age from their considerations. But as Mr Fraser’s case demonstrates, there is still a long way to go.

RED CARD FOR WESTFIELD’S GIFT-GIVING STRATEGY

PETER received a $250 Westfield gift card from his employer but not long after was laid low by a serious illness.

For nine months he couldn’t even work. The last thing he was thinking about was using his gift card.

After recovering Peter went to use the card but it had expired.

Westfield gift cards only have a 12-month lifespan. Public Defender has previously argued this is too short. In the US, cards have to last five years.

Peter asked Westfield for clemency. His first claim was rejected. He asked again. His request, including a letter from his specialist, was sent to Westfield’s Review Committee.

Again there was no joy.

So he contacted Public Defender. We spoke to Westfield. The card has now been reinstated and its value increased to $300.

“You got me the result. Thank you,” Peter said.

A Westfield spokeswoman said the claim should not have been rejected.

The “overwhelming majority” of cards were used within three months, she said, and those unused was “very, very minimal”. The spokeswoman promised to look for figures to back this up. But we didn’t get any.

I look forward to writing about Westfield’s decision to extend the life of its gift cards to something more reasonable — say, three years. Until then, I don’t recommend you buy one.

Peter is trying to get his Westfield gift card reinstated / Picture; Richard Dobson