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

Australian General Insurers Report Record $7.3 Billion Profit 18 Jan 2026: Paige Estritori The Australian general insurance sector has reported a remarkable after-tax profit of $7.3 billion for the last financial year, marking its most substantial earnings in over ten years. This significant increase is primarily attributed to a decrease in catastrophe-related losses and robust investment returns. - read more

Australian General Insurance Premiums Set to Surpass $144 Billion by 2029 18 Jan 2026: Paige Estritori The Australian general insurance market is on a trajectory to see direct written premiums (DWP) exceed $144 billion by 2029, according to projections from data and analytics firm GlobalData. This anticipated growth is largely fueled by heightened demand for coverage in response to the increasing frequency of natural disasters. - read more

Understanding the Impact of New Regulations on Cosmetic Nurses' Insurance 18 Jan 2026: Paige Estritori The cosmetic nursing sector in Australia has experienced significant growth, driven by increasing demand for non-surgical cosmetic procedures such as injectables and skin treatments. This expansion has led to heightened scrutiny and the introduction of new regulations aimed at ensuring patient safety and professional accountability. - read more

Health Minister Addresses Insurers' Use of Loopholes to Raise Premiums 18 Jan 2026: Paige Estritori In December 2024, Australian Health Minister Mark Butler issued a stern warning to private health insurers regarding the use of 'underhanded' tactics to raise premiums. This statement came in response to findings that some insurers have been closing old policies and introducing more expensive ones, effectively increasing costs for consumers without transparent communication. - read more