Update on personal insurance options for ADF members

Members who have taken out accident (and accidental death) insurance from Chartis insurance (formerly known as AIG) should note that there have been changes to the availability of that insurance. Current policyholders should review their personal circumstances and consider what steps should be taken to ensure insurance coverage on ADF duty, if they have decided to supplement their statutory entitlements with private insurance.

The ADF Financial Services Consumer Council (ADFFSCC) has advised that Chartis is discontinuing availability of its ‘Services Security Plan,’ ‘Injury & Accident Insurance’ and ‘Services Accident Insurance’ policies to new policyholders.

However, Chartis has advised that current policyholders will be able to retain their policies until August next year. This means policyholders have between now and August next year to make alternate personal insurance arrangements, should they wish to do so.

 “ADF members should be careful to ensure that their personal insurance policies are valid in war zones and in war-like activity. These are sometimes called ‘war exclusions,’ but can cover a lot more than just war” said Daniel Mendoza-Jones from the ADFFSCC.

The Australian Government Actuary has advised Defence that Asteron and Zurich insurance companies provide life insurance polices that do not contain war exclusions; however, to be effective in war zones and in war-like activity, members must purchase these policies before they receive formal notice of deployment.

This means that AIG/Chartis policyholders who are currently deployed, or have received formal notice of deployment, should make other arrangements as soon as they return, but before August next year.

The ADFFSCC has pointed out that, before making decisions about personal insurance, ADF members should understand their statutory entitlements under the Military Rehabilitation and Compensation Scheme and their death and invalidity benefits contained in their Military Superannuation scheme. Some ADF members have decided that, due to their particular circumstances, they require extra cover.

A good way for personnel to assess whether extra personal insurance is required is to look at what they would be entitled to under the Military Rehabilitation and Compensation Scheme and the Military Superannuation scheme, and then work out what dependants would need, each year, to maintain their current lifestyle. If there is a gap, private insurance could be of assistance. “Insurance should be considered as part of your life's financial planning, and not just at deployment time” said Daniel Mendoza-Jones.

AIG/Chartis policyholders should contact Chartis on 1300 030 886 (or from overseas, +61 3 9522 4000) for information about how the discontinuation of the product will affect them.

Update: 28 October 2011

The Australian Government Actuary has advised Defence that Asteron offers a life insurance policy that does not contain war exclusions, however, to be effective the policy must be purchased PRIOR to formal notice of deployment.

Defence Health can advise you about this Asteron policy.

The Zurich life insurance policy known as Ezicover Term Life was previously available to ADF members through Navy Health. Navy Health has advised Defence that Zurich has made a commercial decision to discontinue availability of this policy to ADF members. However, the Zurich Ezicover Term Life product is guaranteed renewable, meaning that if you are already a policyholder, coverage will continue as long as you continue to pay the premium.

The above information must not be treated as personal advice. Personnel should consider their specific needs and think about consulting an insurance company or a licensed financial adviser of their choice.

Visit the Australian Defence Force Financial Services Consumer Council website at www.adfconsumer.gov.au