Banking royal commission: cold caller sold insurance policy to pastor’s Down syndrome son

Treasurer Josh Frydenberg has recalled a specific story that stood out from the shocking victim testimonies.

Treasurer Josh Frydenberg recalled a specific story that stood out from the shocking victim testimonies. Picture: Kym Smith

In his speech after the findings of the banking royal commission were handed down, Treasurer Josh Frydenberg recalled a specific story that stood out from the shocking victim testimonies.

It occurred during the period focusing on insurer misconduct in September.

Melbourne pastor Grant Stewart gave an account of his Down syndrome son who had been sold an insurance policy by a cold-calling phone sales­person.

The commission heard Mr Stewart was forced to call Freedom Insurance after his 26-year-old son, who receives a disability support pension and has “difficulty understanding” abstract concepts, was talked into taking out a “Freedom Protection Plan”.

The pastor learnt of his son’s policy after seeing a letter of welcome delivered to their home.

After asking his son about the policy and whether he had given his payment details, Mr Stewart said his son became “quite distressed about it; he thought he’d done something wrong and seemed embarrassed and perplexed about the whole thing”.

“He found it difficult to articulate the words let alone understand what they meant,” Mr Stewart said. “I would have thought it was fairly obvious from the conversation that he had no understanding of what he was getting himself into.”

In the original cold call, the son can be heard giving brief replies to the salesperson. When asked, “Do you think $10,000 would be enough for you?”, Mr Stewart’s son replied, “I don’t mind”.

The salesperson then asked, “Do you think 10 would be enough to leave behind for them?”, to which the son replied, “Yes.”

To cancel the cover, Mr Stewart was forced to ring up Freedom ­Insurance, and, had to instruct his son to speak the exact words, “I wish to terminate the policy”.

Royal commissioner Kenneth Hayne called it “a particularly ­affecting record”. “I think the community might have been particularly struck where the agent insisted upon the son uttering the words ‘I want to terminate the policy’.’’