CommInsure will give its loyal customers free life insurance cover, worth $1.2 billion.
Under the Loyalty Bonus Benefit program, customers who have continued their insurance cover with the company since 2002 will have their benefits increased by 5 per cent at the time of a claim.
The cover includes the group's products, life care, total permanent disability cover and trauma cover. The program will come into effect from October 2007.
"Many of our customers feel that the only time they get something from their insurance is when they make a claim," CommInsure managing director Simon Swanson said.
"With bonus cover now available, they can feel they are getting value for money and $1.2 billion is not a bad number. It is also a way to help address the underinsurance problem in Australia."
The group has a similar loyalty program for customers who maintained their income protection cover for three years or more.
These customers now receive an extra $50,000 worth of accidental life cover, and then incremental increases of $100,000 each year.
About 40,000 customers will benefit from the loyalty benefit program.
