PHI 71/13

This circular issued by the Private Health Insurance Branch contains information about Ex gratia payments for people affected by NSW bushfires

Page last updated: 28 October 2013

Printable version of 71/13 (PDF 89 KB)

28 October 2013

Ex gratia payments for people affected by NSW bushfires

Private health insurers have made enquiries to the Department about the treatment of premium payments by members affected by the NSW bushfires. The discounting rules in the legislation may prevent insurers from waiving premium payments. However, consistent with arrangements made following previous natural disasters, the Department considers that insurers can make ex gratia payments to affected members.

The criteria for eligibility for such payments is that the payments are based on members having suffered financial loss in the NSW bushfires, and should be made as ex gratia payments by the insurer for members’ premiums for a specified period of time.

Insurers need to ensure that any payments will not adversely affect their capital adequacy position.

Insurers are advised to notify the Department of Health, the Private Health Insurance Administration Council and the Private Health Insurance Ombudsman of any proposals to make ex gratia payments to members, including the proposed timeframe for these payments.

If you require further information please telephone: (02) 6289 9853/24 hr answering machine or email the enquiry to Private Health Insurance Branch.

For more information visit 2013 Private Health Insurance (PHI) Circulars.

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