Replacement case puts spotlight on 'churn'

It was reported last week that a South Auckland man, Ailepata Ailepata, was denied a $100,000 payout for gastric cancer because their New Zealand Home Loans broker moved their trauma cover from Westpac to Fidelity Life.

The amount of cover was reduced and when they went to claim they were reportedly turned down by Fidelity Life because he did not disclose “impaired glucose tolerance” when the policy was taken out.

The family told media they felt betrayed.

Fidelity Life said on Tuesday that it was still in discussions with the Ailepatas and their representatives. “We prefer not to comment further while these discussions are ongoing.”