The Financial Industry Complaints Service (FICS) says a Victorian Supreme Court ruling against Axa Asia-Pacific means members can have more confidence in FICS determinations.

Last year Axa Asia-Pacific went to court in an attempt to have a FICS determination overturned, but the court has ruled the decision was correct. The insurer had tried to reverse an order to pay income protection benefits to one of its accredited advisers it had accused of fraud.

The adviser, Kevin Day, was an Axa agent for 22 years and claimed he was unable to work after injuring his neck and back.

In 2002 Axa stopped paying benefits. Mr Day lodged a complaint with FICS after Axa alleged fraud and sought repayment of almost $90,000 in benefits and premiums.

FICS determined in favour of Mr Day but said his benefits should be decreased to account for a small amount of income he earned while disabled.

The insurer tried to use this evidence of income as proof that Mr Day was still able to work.

After the determination, Axa Asia-Pacific took FICS and Mr Day to the Victorian Supreme Court to request a rehearing, but Justice Bernard Bongiorno ruled that FICS had not made any procedural errors and ordered Axa Asia-Pacific to pay the other parties’ costs.

FICS CEO Alison Maynard told Sunrise Exchange News the ruling confirms the panel made a sound determination. “We’d like members to read the decision. It means members can have confidence in the determinations of the panel.”

Ms Maynard says the decision was important because it will probably discourage other members from taking this sort of action. “It’s a good result.”