Madness! Cannot Cancel nib Health Insurance Unless They Take First Payment on Start of Policy

Iselect talked me into switching from HCF silver to NIB health insurance extras, better payout for individual general & major dental. I had not completed the last step of payment details sent via email. A few days later after I was contacted by HCF, they offered to waive 2 weeks premium convinced me hcf better in my situation (have already paid for childrens braces, I get free dental as I’m on DSP), I use physio etc., not covered by NIB.

I contacted nib, very day policy commenced, also knew I have 30 days cooling off. Was informed I couldn't cancel NIB unless payment taken?! I don't want to give them my payment details, 1/hcf will perceive I have swapped insurers 2/Nib can't be trusted keep taking the premiums, 3/ hassle I will need to chase up I have been reimbursed. Advice please

Sorted! HCF advised my policy was never cancelled, not to pay nib.
An aside; nib 3 days ago replied to my please cancel email ‘sorry our team are exceptionally busy…chat to nibby 🤣

NIB really turned me off at their very first email to me which was a whole page of info..’ Student dependent..Adult dependent…to have your daughter remain on your policy the cost of your cover would increase by $21 per month! Even though she is a full-time student. A very badly worded email once I read this I decided to contact hcf & stay with them, better the devil you know, though all health funds make billions in profit. Thanks for all your advice ozbargainers.

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  • +9

    Am not in your specific scenario but perhaps mentioning to NIB that you will reach out to the Private Health Insurance Ombudsman ( as you feel this is invaliding your right to a 30 day cooloff might motivate them to waive that fee.

    Do though make sure you have continual coverage.

  • +6

    Iselect talked me into switching

    There is your problem there…

    I had one of them on the phone for over an hour a couple of years back…

    At the end, I said I'd think about it and call them back.
    I never did and it took about 10 missed calls before they got the message i wasn't interested.

    • Oh yeah, Outbound sales HATE when you say you'll call them back for some reason.

  • +4

    Won't the policy just not start if you don't pay it?

  • +1

    Remove your direct debit and then tell to close. its in cooling off periods. Payment should not be needed unless its already requested to your bank and happening over the weekend

  • +1

    1/hcf will perceive I have swapped insurers

    Contact HCF and explain your "Madness". They might come up with a solution for you.

    • +2

      I did a similar thing last year, but with different providers. Get HCF to sort it out and do not pay anything to NIB.

  • +4

    Technically, what NIB is saying does not seem too 'mad'. They can only 'cancel' a cover once it has actually 'started'. And, it cannot 'start' until you pay them.

    Did HCF actually ask you to contact NIB & cancel the cover ?

    If they didn't, then you don't need to contact NIB. If required, HCF will contact NIB directly and arrange for a transfer certificate, if they need one.

    • Technically, what NIB is saying does not seem too 'mad'. They can only 'cancel' a cover once it has actually 'started'. And, it cannot 'start' until you pay them.

      Don't apply logic!! :)

    • This is correct, HCF get cancelled by the notification from the new provider.

  • +1

    2 weeks is a bit of a laugh. I would of suggested 2 months. But anyway, digress. Tell NIB to get stuffed.

    How has HCF been anyway? I just switched to them.

  • Communication with NIB is terrible. I had problems with denied claims more than once and had to threaten them to get my money. Once the cases were escalated, after months and dozens of emails, they were apologetic and finally accepted they had to pay the claims, but that was too little too late. I moved to a different provider after that.

    Just document that you are cancelling the policy withing the 30-day period, and notify the Private Health Insurance Ombudsman.

    As others mentioned, I believe the cover only starts when you pay, not before.

  • No worries. Private Health Funds vary from Fund to Fund on how they treat FT Student (even living with you).
    Be very careful your Daughter isn't cut off by her age or if she moves on Campus or anything.
    Found this:
    Your child must also be:
    aged between 22-24 (up to the day before they turn 25)
    not in a de-facto relationship
    relying on you for maintenance and support.

  • I believe the cover only starts when you pay, not before

    Agree - im sure if you went to claim, they'd say no you havent paid so your policy hasnt started !

  • +1

    So the usual constant attempt at petty fraud that the private sector does as standard operating procedure while fools claim that this is actually better than the government not scamming you.

    • The Fed Govt set the Bar high with Robodebt though… lol

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