QBE INSURANCE DIRTY TRICKS

[Eagleview]

This mainly pertains to Australian sole trader businesses but I would check with your insurance company wherever you may be .

I was involved in an accident on the 5th of February 2010 and broke my right knee . I was unable to work so I made a claim against my sickness and accident insurance only to be refused . I was refused because they , QBE Insurance said I had made no income for the previous year because my tax return said nil tax to pay . QBE has taken that as no income , no income means I have not lost anything so they don't need to pay up .
I sent them a copy of my tax for the previous year and also a profit and loss statement . Because I had bought some new , quite expensive machinery in the previous years which my accountant claimed the depreciation against my taxable income and also claimed my business costs , my business then showed no profit for the year . The tax man had no problem with that but QBE did .
This means that EVERY sole trader business that is not showing a profit above their costs is effectively uninsured . We have always been advised that if you are not a PTY LTD Company and cannot get Workers Compensation insurance on yourself that you MUST get Personal Accident Insurance to relieve the Prime Contractor for any accident you may have . This is a total rort by this insurer , they are quite happy to take the premiums from you but when you make a claim , out comes the small print . Small print but always big words and written in a fashion that the lay person can't understand . I would say that MOST sole trader businesses at the moment in this recession are not making a profit but merely trying to keep their heads above water until better times come along . These people will find they are all uninsured in the event of an accident . I have only been back at work a few weeks and I'm still having a hard time walking , I have had little income since February and this has really been a tough time . And now , because of the lack of income and the fact that QBE didn't pay up , my earnings for this year will definitely be down , so if I get hurt again I still wont be covered .

 

[dmccarty]

If this had happened in my state I would suggest talking with the Insurance Commission at a minimum. I think the State Attorney and the Commerce Department have jurisdiction as well.

Later,
Dan

 

[Chuck52]

If this had happened in my state I would suggest talking with the Insurance Commission at a minimum. I think the State Attorney and the Commerce Department have jurisdiction as well.

Later,
Dan

Hopefully, there's an equivalent in Australia.

Chuck

 

[Eagleview]

Thanks for your input chaps , I have lodged a complaint with the Financial Ombudsman and am waiting for a reply .

QBE Insurance has now sent me a letter saying they will not renew my Accident Insurance Policy because of my severe injury and the likely hood of it being an ongoing problem . It's great isn't it ? I get hurt whilst insured with them , they are still taking the premiums out of my account to this day , they refuse to pay up and now they sack me .

It gets worse , my major Prime Contractor has just informed me they can no longer use my services as they say "I'm virtually uninsured" .

The problem we face is that we don't really know if we are running at a loss until our yearly tax is done and all the depreciation on current machinery is worked out . There are unknowns as well , like machinery you may buy later in the year that will affect your income as well . Also lack of work because of bad weather and being in the middle of a recession doesn't help . Even if we do find out , what are we supposed to do ? Take a part time job at a Pizza Hut to lift our income so our insurance becomes valid ?

Very underhanded and deceitful , I hope they never refer to themselves as Aussies .

 

[dmccarty]

It sure does not sound correct that is for sure. I see how they are playing the tax game on this to their advantage which is not right.

If I understand our Disability laws it is possible that one could not get disability here if you had no income for a period of years. I think it is three years. So if a mother stops working to stay at home for five years until the child goes to school she will not have any income and will not pay into Social Security. If the mother drops the kid off at school one day and then gets in a car accident which leaves her disabled she will not be able to get disability payments since she has had no income in years. Yet she paid into the system for years. But only the last few years count.

Hopefully someone will tell me I am wrong.

Later,
Dan

 

[tallyho8]

Hopefully someone will tell me I am wrong.

Later,
Dan

You're wrong.

 

[jpm]

as been said before,time to lawer up.it's unforunate that insurance plays the game all the time

 

[dmccarty]

You're wrong.

So explain to me why I am wrong.

Later,
Dan

 

[smstonypoint]

So explain to me why I am wrong.

Later,
Dan

Dan,

Based on the SSA link below, you are correct in general. However, the "recent work test" and "duration of work" vary with age.

Disability Benefits

Steve

 

[dmccarty]

One can loose one's ability get to SS Disability payments even after being in the work force for years.

How one looses the coverage depends on age.

I could not believe it when I read this years ago. I was reading because a friend has ALS and was going out on SS Disability. I carry extra disability insurance which he was not able to get because he had a pre existing condition. My Duh moment was when I realized that my disability insurance pays so that I get 2/3's of my month pay check. BUT....

The BUT is that the policy pays ON top of SS Disability. The policy does not pay me 2/3 of my current pay. It makes up the difference between the SS Disability payment and 2/3s of my pay. I don't get 2/3s of my pay check AND the SS Disability.

I thought I was well covered.

I am not but I am covered better than most.

Later,
Dan