PHI 05/11

This circular issued by the Private Health Insurance Branch contains information on ex gratia payments for those people affected by floods

Page last updated: 23 October 2012

Printable version of 05/11 (PDF 22 KB)

14 January 2011

Ex gratia payment for people affected by floods

Private health insurers have made enquiries to the Department about the treatment of premium payments by members affected by the floods. 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 floods, and are made as ex gratia payments by the insurer for the member’s premiums for a specified period of time.

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

Insurers should also notify the Private Health Insurance Administration Council and the Private Health Insurance Ombudsman of any proposals to make ex gratia payments to members.

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 2011 Private Health Insurance (PHI) Circulars.

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