Privacy Rights Prevail: Claimant Sets Precedent in Insurance Information Access Dispute

3

The claim originates from an incident in January when the traveler's belongings, including a bag, were stolen during an overseas trip. In response, SCTI requested a standard consent from the policyholder to acquire "any further information reasonably required" for their investigations.

The claimant, however, raised privacy concerns and proposed a modified consent form. His version mandated that SCTI summarize any information they intended to retrieve and secure written consent before sharing it with third parties.

Insisting on his privacy, the claimant also declined to share his phone number, preferring to handle communications through email, which SCTI found insufficient for the investigation process.

The insurer argued that under the terms and conditions agreed upon by the policyholder at the time of purchase, such an authorization was necessary to ensure comprehensive investigations without any limitations. SCTI warned they could not advance the claim unless the policyholder complied with their request.

On the contrary, the claimant contended that his modifications wouldn't hinder SCTI's access but would merely control the flow of his personal data. He asserted it was unreasonable for SCTI to gather information without his explicit acknowledgment, citing concerns over what he termed as "easily breachable" information.

The Australian Financial Complaints Authority (AFCA) sided with the claimant, emphasizing the need to balance the claimant’s privacy with the insurer's requirement for a thorough investigation.

AFCA noted that SCTI’s request was quite broad, lacking specificity about the necessity of each piece of information. The authority pointed out SCTI's failure to demonstrate any substantial prejudice caused by limiting authority over the claimant's information.

"While requesting limited authority/ies from the complainant presents a greater administrative and time burden for the insurer, it has not shown that doing so would inhibit its ability to investigate the claim or is otherwise unworkable or particularly onerous," the ombudsman remarked.

The ombudsman further commented, "In the absence of the insurer providing reasons to the contrary, the complainant is entitled to know the parties to whom information is being provided to and sought from, its scope, and the opportunity to consent to each."

Thus, SCTI cannot delay claim assessments on the grounds of incomplete standard authorization forms, obliging them to provide the claimant with forms that recognize his conditions.

AFCA also determined that while the claimant may continue using email for routine communication, he must supply his phone number or relevant phone records if deemed vital to the investigation. This case underlines the evolving dynamics between privacy rights and corporate processes, as reported by Insurance News.

Published:Monday, 25th Nov 2024
Source: Paige Estritori

Share this news item:

Insurance News

ACCC Halts IAG's Acquisition of RAC Insurance Over Competition Concerns 11 Dec 2025: Paige Estritori The Australian Competition and Consumer Commission (ACCC) has recently blocked Insurance Australia Group's (IAG) proposed acquisition of RAC Insurance Pty Limited. This decision underscores the regulator's commitment to maintaining competitive dynamics within Western Australia's insurance market. - read more

Suncorp Reaches Maximum Reinsurance Retention Following Severe Storms in Queensland and NSW 11 Dec 2025: Paige Estritori Recent supercell thunderstorms in South East Queensland and northern New South Wales have led to a surge in insurance claims, prompting Suncorp to reach its maximum reinsurance retention of $350 million. The insurer has reported over 10,000 claims related to these events, with approximately half pertaining to home damages and the other half to motor vehicles. - read more

NTARC Report Identifies Inattention and Speed as Primary Factors in Major Truck Crashes 11 Dec 2025: Paige Estritori The National Truck Accident Research Centre (NTARC) has released its latest Major Incident Investigation Report, highlighting inattention, distraction, and inappropriate speed as the most frequent human factors behind major truck crashes in Australia. While there has been a modest reduction in these incidents compared to previous years, they continue to pose significant risks to road safety. - read more

Rising Mental Health Claims Reshape Australia's Insurance Landscape 10 Dec 2025: Paige Estritori The Australian insurance industry is witnessing a significant shift as mental health conditions have become the leading cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health issues now account for nearly one-third of all TPD claims, marking a substantial change in the industry's claim patterns. - read more