QLD Insurance Law - Extra Money for Life Insurance Premiums?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now
25 May 2016
2
0
1
Can a company ask for extra money for premiums under insurance law? I pay premium yearly for life insurance and the company has asked extra $400 dollar for a discrepancy in their billing costs. If not paid in 2 weeks, the policy will lapse.

Question I paid full premium, asked in January. Do I have to pay this extra amount?
 

Victoria S

Well-Known Member
9 April 2014
518
58
2,289
Did the premium simply go up in price? Or what basis are they asking for more money? If you agreed to pay the premium by the year, they shouldn't be able to ask more of you for that period, but if its a new period that you are paying for they are entitled to raise their premiums.
 
25 May 2016
2
0
1
Did the premium simply go up in price? Or what basis are they asking for more money? If you agreed to pay the premium by the year, they shouldn't be able to ask more of you for that period, but if its a new period that you are paying for they are entitled to raise their premiums.


No, same policy paid in full in January for a year. They said it was a discrepancy in their billing cycle.
 

Victoria S

Well-Known Member
9 April 2014
518
58
2,289
I don't understand what "discrepancy in a billing cycle" means. If you don't either perhaps you could probe them for further information before paying anything. In the absence of a proper explanation, and you receiving more for the extra money that they are demanding, I would be arguing that you concluded a contract with them in January for 1 year's cover in your policy and that they cannot now change the terms of that policy and charge you more for the same thing that they agreed to provide in January last year.