A pair of insurance advisors – and just perhaps their company – have allegedly hit a new low.
Riadh Zora, an Assyrian immigrant, with a wife and three children was fleeced by advisors from Combined Insurance, an insurance company operating in Australia since 1959 but bought out by player ACE in 2008.
Zora and his wife suffered with chronic and debilitating illness over the last several years, but when he made that clear to the advisors their response was shocking.
The two agents, he told investigators, reacted by leaning forward and whispering, “Shhhhh.”
"He said, 'Don't worry about mentioning that. Leave it to us. We will make it all OK,’" said Zora.
The advisors filed the documents to purchase sickness policies on behalf of him and his wife, but allegedly failed to disclose his medical history to the insurer.
When Zora later attempted to make a claim when his wife fell ill, he was denied.
"I bought the insurance for peace of mind, to help look after my kids," Zora said to the Sydney Morning Herald.
Zora is still furious he was scammed and wasn’t aware the advisors were working on commission so wouldn’t get paid unless they sold him a policy.
Alarmingly, Zora is but a drop in the bucket.
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An insider who asked to remain anonymous has estimated that at least 10 per cent, and as many as 60 per cent, of the company's estimated 70,000 policyholders may have been misled, sold incomplete or ineffective accident, sickness and disability policies.
Fairfax Media in Australia revealed that ASIC, the country’s regulator, has launched a major probe into the firm.
Alison Moore, who worked for the Combined Insurance between 2003 and 2014, alleged corruption at Combined Insurance is not only widespread but has been swept under the rug by an internal audit department that "inexplicably fails to detect vast numbers of fraudulent applications/sales."
Leaked company documents reveal how agents were pressured in to selling as many policies as possible not only to maximize their commissions but to win prizes, trips overseas and promotions. The environment has been described as a "sales culture on steroids."
In a statement, Combined said it had a strong system to deal with misbehaviour by its agents and that it was "troubled and concerned to learn when any of our customers have not been treated appropriately."
The firm also stated it "receives complaints from only a very small percentage of its policyholders" and that it was working with ASIC to "determine whether any additional changes may be necessary."
Zora and his wife suffered with chronic and debilitating illness over the last several years, but when he made that clear to the advisors their response was shocking.
The two agents, he told investigators, reacted by leaning forward and whispering, “Shhhhh.”
"He said, 'Don't worry about mentioning that. Leave it to us. We will make it all OK,’" said Zora.
The advisors filed the documents to purchase sickness policies on behalf of him and his wife, but allegedly failed to disclose his medical history to the insurer.
When Zora later attempted to make a claim when his wife fell ill, he was denied.
"I bought the insurance for peace of mind, to help look after my kids," Zora said to the Sydney Morning Herald.
Zora is still furious he was scammed and wasn’t aware the advisors were working on commission so wouldn’t get paid unless they sold him a policy.
Alarmingly, Zora is but a drop in the bucket.
#pb#
An insider who asked to remain anonymous has estimated that at least 10 per cent, and as many as 60 per cent, of the company's estimated 70,000 policyholders may have been misled, sold incomplete or ineffective accident, sickness and disability policies.
Fairfax Media in Australia revealed that ASIC, the country’s regulator, has launched a major probe into the firm.
Alison Moore, who worked for the Combined Insurance between 2003 and 2014, alleged corruption at Combined Insurance is not only widespread but has been swept under the rug by an internal audit department that "inexplicably fails to detect vast numbers of fraudulent applications/sales."
Leaked company documents reveal how agents were pressured in to selling as many policies as possible not only to maximize their commissions but to win prizes, trips overseas and promotions. The environment has been described as a "sales culture on steroids."
In a statement, Combined said it had a strong system to deal with misbehaviour by its agents and that it was "troubled and concerned to learn when any of our customers have not been treated appropriately."
The firm also stated it "receives complaints from only a very small percentage of its policyholders" and that it was working with ASIC to "determine whether any additional changes may be necessary."
