What You Need to Know About Claims Paid by AMP Insurance

What You Need to Know About Claims Paid by AMP Insurance

The various forms of personal insurance are designed to provide financial assistance to the insured and their loved ones in case an untoward incident happens to them, such as a serious injury or illness, or even their death. The benefit payments will help pay for their financial needs such as their regular household expenses, their hospitalisation, as well as for the future education of their children and mortgages. Thus, many people looking to take out insurance are concerned about whether or not insurance companies pay insurance claims. After all, nobody wants to find out that they won’t be able to receive the benefit payments they think are due to them when they need it the most.

In this article, we focus on AMP Insurance to get an insight on their claims history.

Insurance Claims and AMP Insurance

AMP is one of the largest insurance providers in Australia. It has been around for more than 160 years, and has established itself as a reliable insurer and has a good reputation for paying a high percentage of claims promptly.

Throughout 2013, AMP has paid out more than $850.5 million in claims across the various types of insurance that it offers: trauma, death, terminal illness, income protection, and total and permanent disablement (TPD). The claims included those that have been made through its insurance products made available through super.

Of the total benefit payments, $319.9 million went to life insurance claims. Income protection insurance claims followed after that with $251.4 million, then TPD with $131 million, trauma insurance with $83.9 million, and then finally terminal illness claims were at $64.2 million.

In the following sections, we take a closer look at each insurance product and the claims payments made by AMP.

Income Protection Claims

This type of insurance provides up to 75 per cent of the insured’s regular income on a monthly basis if they’re unable to work due to an illness or injury. In 2013, majority of the claimants of this type of insurance were men, comprising 75 per cent of the total, while women formed the remaining 25 per cent. It also demonstrated that accidents could happen to anyone as the youngest claimant for that period was 18 years old, while the oldest one was 81 years old -- a vast difference to say the least. Majority of the claims were made by people who were 50 to 59 (40 per cent), followed by the 40 to 49 group (29 per cent), then those 60 years and above (17 per cent), then the 30 to 39 group (10 per cent), and finally those who are under 30 years old (4 per cent).

Of the $251.4 million paid for income protection claims, the largest monthly benefit payment was $65,784. Meanwhile, the most common cause of claims were due to accidents (22 per cent).

Life Claims

This is paid out when the insured dies. The beneficiaries may use the benefit payment to pay off debts, pay for the funeral expenses, and help them maintain their lifestyle.

Life claims comprised the biggest chunk of the total claims made in 2013, which totaled to $319.9 million. Of this number, the largest benefit paid was $3 million. The youngest claimant for the year was 12 years old, while the oldest was 91 years, again. Those 60 and above composed majority of the claims (34 per cent), followed by the 50 to 59 group (30 per cent), then the 40 to 49 (18 per cent), the 30 to 39 (12 per cent), and those under 30 (6 per cent). In this type of insurance, the main cause of claims was cancer in its various forms.

Terminal Illness Benefit Claims

In this type of insurance, the benefit will be paid out when the insured is diagnosed with a terminal illness. In 2013, the biggest cause of claims under this is cancer. Majority of those who made a terminal illness benefit claim were those aged 50 to 59 (48 per cent), followed by those 60 and over (27 per cent), then those 40 to 49 (21 per cent), then the 30 to 39 group, with the youngest claimant aged 34 years, and the oldest being 88 years. The largest benefit paid for that year was $1.8 million.

Trauma Cover Claims

A benefit is paid out in this case if the insured suffers from a medical condition or goes through a medical procedure specified in the policy. As with terminal illness, the majority of claims were caused by cancer. Meanwhile, those aged 50 to 59 composed the bulk of the claims, with those under 30 being the smallest group. In 2013, the largest benefit paid by AMP for trauma cover was $2.2 million.

TPD Claims

This is paid out when the insured becomes totally and permanently disabled, as defined by the policy. The claims for this insurance type were mainly caused by accidents, and hit mostly those aged between 50 and 59, with the youngest claimant aged 18 years and the oldest being 64 years. During that year, the largest benefit payment was $2 million, which could be enough to pay for the insured’s medical expenses, repay their major debts, and provide for their financial needs in the future.

How to Make an Insurance Claim at AMP

When making an insurance claim with AMP, the company will assign a claims assessor with whom the insured and their family could get in touch through telephone or email. The assessor will be the only contact person of the insured to help facilitate the entire claims process.

When assessing the claim, AMP will review all the necessary documents to come with the decision, such as medical evidence. The company will do its best to keep the process as quick, efficient, and as stress-free for the insured as possible. For more information on AMP’s insurance products, you may speak with one of our qualified insurance advisers here at Rate Detective.

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Published on July 7-th, 2014 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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