Grant Stewart appearing before the royal commission.Credit:Royal commission
Mr Stewart said his adult son had"reasonable"literacy and numeracy skills,but had difficulty understanding abstract concepts and required help with making decisions and managing his finances.
“I was quite staggered because we had no idea that this had happened ... and I was flummoxed,really,” Mr Stewart said.
For the policy to be terminated,Mr Stewart's son was required to say the words"I wish to terminate the policy"over the phone. A recording played showed him stuttering,and Mr Stewart said his son was"quite distressed"by the experience.
Mr Stewart lodged a complaint with the Australian Securities and Investments Commission,and in mid 2016 he asked Freedom for the recordings of the initial sales call.
I was quite staggered because we had no idea that this had happened ... and I was flummoxed really.
Grant Stewart
Freedom's chief operating officer Craig Orton offered a public apology from the witness box.
"Mr Stewart,to you and your son,I sincerely apologise for that - your son had to be put through that,and you have that from the bottom of my heart. It should not have occurred,"he said.
Mr Orton told the hearing Freedom no longer sold accidental death or accidental injury cover through outbound calls,and late last week had decided to stop selling life insurance and trauma policies by outbound calls.
Mr Stewart,to you and your son,I sincerely apologise for that - your son had to be put through that,and you have that from the bottom of my heart.
Freedom's Craig Orton
The salesman who sold the insurance was"exited"from the business soon after the call,Freedom said in a letter to Mr Stewart.
Sad face
The royal commission heard how the Freedom sales agent who flogged the policy to Mr Stewart's son had been the subject of multiple complaints and warnings for his behaviour towards customers. But he was also praised for his sales record.
In one April 2016 email shown to the royal commission,his team leader praised the agent for"smashing over 200 lives and earning amazing commissions",while warning the agent that"all of that counts for nothing when you continue to do the same things over and over,it's a problem".
Freedom's Craig Orton..Credit:AAP/Julian Smith
Mr Orton admitted the agent should have been terminated well before he made the call to Mr Stewart's son.
The royal commission was also shown an email between Freedom's former chief operating officer and the head of sales,in which they discussed Mr Stewart's son,which was described as"a bit of a shocker"."I felt so sorry for the poor customer throughout the call,"the chief operating officer wrote,before ending with":(".