Just had an email update on this from NIB. They have agreed to pay a full refund.Got another email from NIB. Best they are prepared to offer me is a credit with them that needs to be used by June 2021.
I'm pushing again, a bit harder this time. Prepared to give AFCA a shot if I don't get a positive response:
Thank you for your most recent response to the series of enquiries I have made over the past few weeks with regard to obtaining a refund for policy number XXXXXXXXXXX. This is now the fourth contact I have had with NIB about this matter.
At this time I am not satisfied with the progress that I have made. Without prejudice, below I outline for you the salient facts and once again request that you process a refund for this policy.
1) NIB has sold a junk policy. That is a policy which NIB knows that I will never be able to use or make a claim against.
2) It is incorrect for you to state: "we are unable to cancel your policy and offer a refund." Under the PDS, NIB IS able to offer a refund of my policy. Your PDS explicitly permits this to occur. As you appear to be unfamiliar with the PDS, I provide the relevant part of the PDS for you here:
"If you request to cancel your policy outside the cooling-off period, we may, at our discretion, refund that part of your premium paid for the unused period of insurance; we may charge an administration fee to do so."
3) NIB is aware that it is very unlikely that I or other Australian citizens will be able to travel internationally by the time that the proposed credit would expire. The offer of the credit is therefore inappropriate.
4) I am prepared to lodge a formal complaint with AFCA if this matter is not satisfactorily resolved and this email serves as the notice to you that AFCA requires.
If you are not in a position to consider this further, I urge you to refer this matter to a more experienced member of staff who is familiar with your PDS, so that the refund that I have now requested multiple times can be processed without further delay. "
For those still trying for the refund, keep pressing hard and hopefully you can get the same outcome.
And FYI, they will process the refund directly to my bank account as I provided evidence that the credit card used to pay for the original policy had been cancelled.