Group Insurance - Fraud With Loopholes

The fight for life insurance for a young father who died of cancer has been taken to the High Court. Andrew Porteous, 34, was diagnosed with stage 4 esophageal cancer last year. It spread to his brain and he died on February 12. His funeral is today.

He spent his last weeks battling for a $450,000 AMP life insurance claim so his wife and two young children could be comfortable after his death.

A Statement of Claim was filed in the High Court last week. It is seeking: clarification on the correct interpretation of the policy, an order that AMP is liable under the policy and costs.

The lawsuit has been filed against the insurer, former employer Latitude and insurance broking company Marsh.

Porteous had been made redundant in July 2016 after being a credit analyst for GE Money for 12 years. The company had been bought by Latitude Financial Services.

Porteous' insurance with AMP came as part of his job and the policy had lapsed by the time he was diagnosed in October.

But barrister Sandra Grant, who was representing Porteous, argued in December that they had medical evidence that proved he had terminal cancer before his policy lapsed - he just didn't know it yet. This meant that AMP did have an obligation to fulfill Porteous' life insurance policy, she claimed.

Porteous said he didn't know the policy was lapsing and if he did he would have chosen to continue it.