The life insurer at the centre of an alleged $500,000 insurance fraud payout remains tight-lipped after another insurer told insuranceNEWS.com.au it had rejected a follow-up claim worth $1.5 million.

Last week the Sutherland Magistrates Court granted bail to Sydney man Clint Elford subject to a $50,000 surety, after it was alleged an insurer identified as AIG Life paid him $500,000 after he submitted a false claim.

Mr Elford later embarked on a spending spree that included a $30,000 donation to rugby league club the Cronulla Sharks. Mr Elford’s parents have also been charged with money laundering.

An AIG Life spokesman declined to comment when approached by insuranceNEWS.com.au. The case has been adjourned until June 24.

But a spokesman for Allianz Australia told insuranceNEWS.com.au its life operation knocked back another $1.5 million claim from the accused after he allegedly submitted a claim just nine days after buying the policy.

“We had suspicions from the word go in relation to the claim,” he said. “We identified other concerns quite quickly, including the medical reports filed in support of the claim.”