Insurance documents 'too confusing'

Policy wordings have been in the news since traveller Abby Hartley fell ill in Bali. Her travel insurer would not pay out because she had not disclosed a pre-existing condition.

Insurance and Financial Services Ombudsman Karen Stevens' office said it was a reminder to clients to make sure they understood the terms they were signing up to when they took out a new personal risk policy.

But Aaron Gilbert and Ayesha Scott, of AUT's finance department, said that was not easy for most laypeople to do.

“The comments by the Financial Services Ombudsman in relation to insurance that travellers should read the policies ignore the fact that the policies are not designed to be read," Scott said.