Non-disclosure case divides advice industry

Tony Vidler

Ailepata Ailepata made news last month.

Ailepata was turned down for a $100,000 claim for gastric cancer because he had been switched to a new insurer, with less cover, and he had not disclosed his “impaired glucose tolerance” when the policy was issued.

Some were quick to decry the “churning” insurance industry and advisers looking to make money from vulnerable clients.

Adviser coach Tony Vidler described the actions of the NZ Home Loans adviser who shifted Ailepata from a Westpac policy to a Fidelity Life one, with half the amount of trauma cover, as a “shocker”.