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Note:
The specific and exact definition for each of these particular events
in terms of the coverage provided is contained in the Master Policy
wording.
PSBG
Income Continuance Cover
= Income Replacement during periods of disability arising from
an accident or illness.
This
Plan provides for an annual renewable income replacement insurance
with various options to cover total and partial disablement caused
by accident or illness.
Members
decide for themselves upon the level of cover they require.
The
cover is available for up to a maximum of 75% of weekly income,
subject to optional qualifying periods of 4 weeks, 8 weeks or 13
weeks.
The
benefit payment periods selected can either be for 2 years or right
up to the attained age of 65 years.
Basic
Benefits
The insured benefit is payable monthly (in arrears) on total disability
caused by accident or illness.
The
amount of the benefit is the agreed sum insured, less the amount
attributable to the qualifying period selected and less any other
disability income benefits received.
Other
disability benefits include those from other insurance or similar
schemes, payments under the Accident Insurance Act 1998 or any other
statutory benefits or compensation.
Additional
Benefits
Recovery Benefit
For
insured members who have been disabled for at least two weeks, returning
to work in a reduced capacity for more than two weeks, a proportional
recovery benefit less the amount attributable to the qualifying
period selected is payable.
Continuation
Option
If
a member, who is not totally disabled, leaves his or her employment
or ceases to practice to take up any other full time employment
or practice there is an option to transfer the cover to a similar
individual policy, without the need for normal evidence of continued
good health.
Recurring
Disability
If
a member who has been totally disabled and receiving the total disablement
benefit has returned to work but is totally disabled again within
26 weeks from the same or related causes, the qualifying period
selected will not be applied again. The claim will be treated as
the extension of the earlier claim.
Waiver of Premium
No
premium is payable by members for any period during which the insured
benefit is payable. This does not include any period of the recovery
benefit.
Coverage
Overseas
Should
a claim commence whilst a member is overseas, return to New Zealand
or a country where the Insurer has suitable offices may be necessary
if the claim payments extend beyond 3 months unless the disability
itself prevents any reasonable travel.
Rehabilitation
Expenses Benefit
If
a member on an insured benefit for a least 3 consecutive months
requires rehabilitation (as recommended by the attending physician
and agreed to by the Insurer) then an additional sum of up to 3
times the monthly benefit for reimbursement of equipment and other
capital expenses may be paid. This is provided such expenses are
not reimbursable from any other sources.
Nursing
Care Benefit
If
a member in receipt of the insured benefit has been certified by
the attending physician to require full time and continuous care
of a registered nurse for more than 3 days during the qualifying
period the Insurer will pay retrospectively a charge for the nurse
beyond the 3 days. This is provided such cost is not reimbursable
from any other sources and shall be limited to 1/30th of the monthly
benefit for each additional day of such care, up to a maximum payment
for 60 days.
Death
Benefit whilst on a Claim
If
death of a member occurs whilst on a disability income claim, the
amount of the benefit paid will continue to be paid for a further
month after the date of death.
Variable
annual premiums
Premiums
vary with the age of the insured at each renewal.
Provision
for annual increases
After
being accepted for the coverage, a Member is entitled to review
the coverage annually at each subsequent renewal.
There
is a provision for an increase in the sum insured up to agreed Maximum
Underwriting Limits, without any further evidence of continued good
health.
That
is provided such increase does not exceed 30% of the prior sum insured
in any plan year and is consistent with the financial situation
of the Member.
What
are the exclusions?
Under
the PSBG Term Life Plan no coverage is available for suicide within
13 months of the date the cover initially commenced.
There
are also a limited number of policy exclusions relative to the total
permanent disability coverage under the plan.
These
relate to the consequences of:
-
War (including war service), acts of foreign enemies, warlike
operations (whether war be declared or not), civil commotion,
civil war or rebellion.
- Intentional
self-injury (including the use of alcohol or drugs other than
in accordance with the direction of a registered medical practitioner)
or intentionally contracted infection or any attempt thereat.
- Any
disease or physical disorder excluded by the Insurers when they
accepted the cover.
Under
the PSBG Trauma Cover there are similar exclusions to the above
but also a further exclusion relative to:
- any
injury or illness which either results, or but for the use of
artificial life support would in the Insurers' opinion have resulted,
directly or indirectly, in death within 14 days of sustaining
the injury or the diagnosis of that illness.
The
PSBG Income Continuance Cover contains exclusions for:
- War
(whether war be declared or not) involving New Zealand's Armed
Forces or involving the country of residence.
- Intentional
self-inflicted injury or illness, or normal and uncomplicated
pregnancy or childbirth.
- Any
disease or physical disorder or other risk specifically excluded
by the Insurers when they accepted the cover.
Flexibility
By
combining these types of cover with their financial & retirement
plans, Members have real flexibility in determining the overall
protection possible.
Once
accepted, coverage is available up to age 65, even if the member
contracts a serious illness at some later stage.
The
Insurers do, however, have the option to cancel the whole PSBG Group
Scheme Policies with appropriate and written notice, but cannot
otherwise cancel a Member's own cover.
Integration
with Accident Compensation
The
PSBG Plans are designed to integrate with the statutory compulsory
Accident Compensation Insurance regime.
By
counter balancing the level of coverage against the compulsory regime,
the most suitable "top up" insurance protection can be
arranged.
Integration
with retirement plans
As
time goes by and a Member's own financial resources or retirement
funds accumulate, the level of insurance may be scaled down to permit
increased alternative investment of the premium savings.
By
such counter balancing the member can integrate the security of
any investment funds with suitable "top up" insurance
protection at all times.
The
benefits of term
The
insurance products are designed to provide worldwide cover at the
lowest cost on the basis of term insurance, hence there is no premium
component for any "bonuses" or "profits". Members
only pay for the actual protection afforded.
Tax
Status
In
general terms individual members, who are self-employed, do qualify
for personal tax exemption on the premiums for the PSBG Income Continuance
Plan and only the benefits payments are taxable upon receipt.
In
general terms, the premium paid by employers on behalf of staff
members for any of the plans is tax deductible but does attract
fringe benefit tax.
In
other circumstances, the premiums are not tax deductible under current
legislation. Members should obtain specialist tax advice, if at
all in doubt, in regard to the taxation treatment for the premium
paid in any particular circumstances
GST
Premiums
paid for the PSBG Term Life Plan do not attract GST, except for
the component in the premium for total permanent disablement benefits.
GST
is payable on the premium for the PSBG Trauma and PSBG Income Continuance
Plans.
Are
medical examinations required to join the plans?
The
Insurer requires individual proposals for each of the covers and
at the Insurer's discretion may require a medical report or examination
after assessing the proposal information.
This
will depend upon the amount of the coverage required or the personal
medical history of any applicant.
Can
premiums be deducted from PSBG Retirement Fund contributions?
Yes,
if you are a member. Where such deductions are made from the subsidised
sector of the Fund, this may be done but only with the employer's
approval.
What
are the age limits applicable to the group plans?
In
respect of the Term Life, Total Permanent Disablement or Trauma
Insurance, covers cease at age 65.
The
Income Continuance cover ceases at age 65 or upon ceasing a gainful
professional occupation, whichever occurs first.
Can policies be issued to another person?
Yes.
For Term Life cover the policy owner can be a company, a person
or persons other than the life insured, provided the owner has an
insurable interest.
For
the Income Continuance cover the policy owner is always deemed to
be the insured person.
What
facilities are there available for Partnership insurance?
Any
partner or group of partners may propose for cover on the life of
any partner or persons eligible to be in the scheme, with the consent
of the person whose life is to be insured.
What
facilities are there available for Key Person insurance?
A
Company may effect cover on a key person as the policy owner. If
the Company retains the policy proceeds, effectively as a "loss
of profits" reimbursement, then the proceeds are taxable on
receipt.
What
happens on ceasing practice or employment?
If
a member continues to be eligible or if employment is transferred
to another employer within the Group the coverage can be maintained.
However,
in other circumstances cover will normally cease unless the continuation
option to transfer to a similar individual is exercised.
Where
are the master policies?
The
Master Policies are held by the PSBG Insurance Consultants, Aon New Zealand Limited Professional Indemnity.
Individual
members receive individual certificates.
However,
at any time, Members can request a full copy of any of the Master
Policies.
How
to apply for the insurance?
To
apply for cover complete the Proposal Form and forward the completed
application to Aon New Zealand.
They
will confirm:
- the
deposit premium payable
-
whether any medical examination or further information is required
- the
PSBG Insurer's acceptance terms.
What
happens if shortly after applying for the cover it is no longer
required?
There
is no problem.
Following
acceptance of the cover by the Insurer, you have 14 days from receipt
of the Certificate to advise Aon New Zealand that the cover
is no longer required.
At
your request, a full refund of the deposit premium paid will be
made and the cover will be cancelled from inception.
The
policy owner may cancel the cover at any time by writing to Aon New Zealand Limited.
A refund
of the premium for the unexpired period of the cover will be made
to you.
For
how long have the Group Policies been operating?
The
insurance schemes were first set up in 1975.
For
more information or assistance contact:
Aon New Zealand
Level 8, BP House
20 Customhouse Quay
Wellington 6011
Phone: (04) 819 4000
Fax: (04) 819 4106.
Email: psbg@aon.co.nz
Office
Package Plan 
This
Plan provides for an annual renewable cover for
Material
Damage Insurance
Protection for your assets including field equipment.
Protection
for your commercial buildings for either indemnity or replacement
value. Optional loss of rental cover.
Business
Interruption Insurance
Provides
cover for loss of profits or additional expenses following damage
at your office. Optional reconstitution of records cover.
Loss
of Money
Includes
cash, cheques, etc.
General
(Public) Liability
Protection
for your Legal Liabilities to third parties, apart from your Professional
Duties.
Motor
Vehicles
Full comprehensive cover.
Employers
Common Law Liability
For
claims falling outside the ACC.
Statutory
Liabilities
For
fines and penalties and legal defence costs relative to alleged
breaches of various statutes.
Personal
Insurances
This
Plan provides for an annual renewable cover for
Home
and Contents
Replacement
value or more Limited Cover Options.
Motor
Vehicles, Caravans, Trailers
Full
comprehensive cover.
Boats
Wide
cover.
For
more information or assistance contact:
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