No cover for childbirth trauma

Trauma insurance cover is specific. Check the exclusions, and the conditions listed in your policy.

No cover for childbirth trauma

Carol* sustained significant injuries during childbirth, including a complicated 4-degree obstetric tear, and an immediate post-partum haemorrhage, which was life threatening. Carol required emergency colorectal and obstetric surgeries.

Carol was encouraged by her adviser to make a trauma insurance claim. The claim was declined, because Carol had not suffered a trauma condition as listed in her policy. Carol complained, and said the decision was unfair.

Carol said this was the worst trauma she had ever experienced and exactly the kind of thing she thought trauma insurance was for. The case manager said, while Carol’s experience was significantly traumatic, it wasn’t a specified life threatening health condition listed in the policy, so there was no cover. The insurer’s settlement offer, of a four-month premium credit on a goodwill basis, was reasonable.

Complaint settled.

*Names have been changed.

See the full case study.