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MLC backdates new medical definitions

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MLC policyholders can claim for past heart attacks or arthritis after the insurer retrospectively updated old definitions.

The update to the severe rheumatoid arthritis definition will be backdated to January 1 2014 on critical illness policies, and the heart attack change will be backdated to September 10 2012.

Definitions are being updated to comply with the Life Insurance Code of Practice.

Slater & Gordon lawyer Sarah Snowden says policyholders can have claims reviewed if they were rejected under outdated definitions.

“This is good news for people who have experienced these health conditions, because they have been paying hefty premiums for this type of insurance cover and should seek advice on whether they can have the decision reconsidered or challenged,” she said.

The Australian Securities and Investments Commission investigated CommInsure two years ago over the use of outdated medical definitions to deny claims.