Financial hardship


The Insurance Code deals with policyholder hardship in two instances. The first is where a policyholder has made a claim and is in “urgent financial need” of payment under the policy. If a policyholder can demonstrate the urgency of the situation, an insurer will fast-track the assessment and payment of the claim or make an advance payment or both (s 7.7 Insurance Code).

Second, where a policyholder or other party is indebted to an insurer (but not in respect to premium) and can demonstrate that they are experiencing financial hardship, an insurer will consider providing assistance by modifying the terms of payment or waiving or discharging the debt (s 8 Insurance Code).