Complaints have been lodged with Australia’s primary financial regulatory bodies regarding an insurance provider charging an 88-year-old Aboriginal pensioner nearly $10,000 annually for home and contents coverage.
Maureen O’Meara shared with National Indigenous Times the distress her late father, Leonard O’Meara, a Jaru man, endured due to the steeply increasing premiums, which ultimately led to his depression.
“He was 88 years old, he was a very strong man, private about his own business,” she recounted, revealing her shock upon discovering the exorbitant premium notices during her visit to Derby last year.
Ms. O’Meara recounted her father’s profound stress and subsequent heart attack, which tragically claimed his life. She expressed how witnessing his struggle with financial worries was particularly distressing, given his lifelong self-reliance and dedication to his family.
Leonard O’Meara had initiated home insurance coverage in 2009, opting for the ANZ Home Insurance policy during a visit to his local branch. Initially co-insured by QBE Insurance and an ANZ subsidiary, the policy transitioned solely to QBE in mid-2015.
Over the years, the cost of insuring his home soared, reaching over $9,500 in 2022-23, totaling $54,000 in premiums paid from 2009 to 2024. However, a recent property valuation revealed that the house, constructed in the 1950s, held a value of no more than $175,000, with the bulk of the valuation attributed to the land.
Alan Gray from Bush Money Mob, who assisted the O’Meara family, reported the case to regulatory authorities, aiming to prompt an investigation into what he described as “appalling mistreatment.”
In response to these allegations, QBE refuted claims of exploitation, asserting that premiums reflected the risks and benefits outlined in the policy. The insurer emphasized that Mr. O’Meara received entitled discounts, including a senior discount, and denied imposing a loyalty tax.
Furthermore, QBE clarified that the policy ensured full building replacement, adhering to contemporary building standards and regulations. Consequently, the cost of rebuilding the property to meet current standards could exceed the market value of the property, the insurer explained.
Ms. O’Meara labeled the situation a “loyalty penalty,” advocating for systemic changes within the industry to prevent similar incidents and ensure ethical treatment of customers.
While QBE defended its practices, emphasizing adherence to policy terms, the O’Meara family’s plight has sparked broader discussions about insurance affordability and transparency, prompting calls for regulatory scrutiny and reform.
