Education clause 'used too expansively'
Some total and permanent disability policies require that the insured cannot return to their usual occupation and will not ever be able to engage in any employment, business or occupation for which they are reasonably fitted by education, training or experience. This is known as an ETE clause.
Insurers had argued that in some cases this could apply to education the insured could undertake in future, to qualify for a different occupation.
Keegan Alexander partner Crossley Gates pointed to a case in Australia, in which a man qualified as a roofer. He injured his back and was unable to return to work.
His insurance claim was declined because the insurer said he could still work in hardware retail sales, as a courier, console operator or telemarketer, if he undertook future training.
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