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Cancelled or Lapsed Coverage

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Most if not all Australians have some form of insurance over their home, valuables, vehicle, or health. The rationale behind insurance is simple, you make payments whilst things are fine so that when they aren’t you have the benefit of financial protection.

However, it is not uncommon for individuals to believe they are insured and to only find out that their insurance has lapsed when something goes wrong, and they make a claim to their insurer.

Oftentimes, insurance companies will cancel an individual’s policy in response to additional information they have received which increases their risk to a level they deem unacceptable, or because one or more premiums were not paid by the due date, which can happen if the insured has agreed to pay in instalments by direct debit and payment has failed.

If a policy is cancelled or lapsed, the insurer is not legally obligated to payout, which can leave the insured in a difficult position.

Whilst insurers are required to provide notice if they intend to cancel an individual’s coverage, sometimes notice is not provided, or if it has been provided for one reason or another it wasn’t received. If you have received notice that your policy has been cancelled, you should seek legal advice as to whether the insurer had sufficient reason to cancel it or whether the appropriate steps were taken in providing notice.

If you intend to dispute your policy cancellation or lapsed coverage, being experienced in all forms of dispute resolution and litigation, our team at Dormer Stanhope can alleviate some of the stress of the situation and advise and guide you through the process of pursuing your claim and ensure that you receive the benefit of the insurance policy you spent so long contributing to.

If you or someone close to you has been notified their insurance has been cancelled or has made a claim against an insurance policy and it was rejected due to a lapse in coverage, contact Dormer Stanhope today for a free initial consultation about your available options.

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