One of Australia's biggest life insurers has moved to cut off payouts to customers who die from COVID-19, including frontline doctors fighting the deadly virus.

Key points: A leaked document shows major insurer TAL adding coronavirus exclusions to some new insurance policies

A leaked document shows major insurer TAL adding coronavirus exclusions to some new insurance policies One insurance broker said he was "shocked" by the move, but TAL said it only applied to a small number of policies

One insurance broker said he was "shocked" by the move, but TAL said it only applied to a small number of policies The exclusions do not affect people who already have life insurance through TAL, or those who are insured through their super

An internal document from insurer TAL, obtained by the ABC, reveals the company has begun adding an exclusion clause for the coronavirus in new insurance policies.

"No benefit will be payable under this cover for any claim resulting directly or indirectly from COVID-19, any related condition or infection or any complication thereof," the clause reads.

The exclusion applies to some policies sold through insurance brokers or directly by TAL, but does not affect existing customers or people who take out life insurance through their superannuation.

TAL, which is owned by the Japanese insurance giant Dai-ichi Life and has almost 4 million Australian customers, declined requests for an interview but in a statement said the exclusion had so far been inserted in "only a very small number of new customer policies".

"If during the underwriting process it has been determined that they have recently travelled abroad, or are showing symptoms of COVID-19, or are in high risk groups (broadly based on current government guidelines), then these customers will be individually assessed, and individual underwriting terms may be offered," the statement said.

Insurance industry sources say TAL intends to apply the exclusion to customers aged over 50, smokers, as well as those with asthma or other respiratory illnesses.

Most controversially, the company plans to use the exclusion for doctors who may be exposed to COVID-19.

'I was truly shocked'

TAL is one of Australia's biggest life insurers. ( Supplied )

One financial planner who specialises in life insurance for health workers said TAL told him the exclusion would apply to frontline doctors, including emergency specialists and GPs.

"TAL told me it may also apply to income protection for mental health conditions, such as stress," said the broker, who asked to remain anonymous.

"I was truly shocked, and I have been given no choice but to take my clients to another insurer."

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In its statement, TAL dismissed concerns that applying the exclusion to doctors could discourage them from treating patients with COVID-19.

"All existing TAL customers, including doctors, nurses and medical professionals on the frontline, can be assured they are fully covered for COVID-19," it said.

"All new customers can also be assured that they are fully covered for COVID-19, unless in cases where an individual underwriting decision has been applied."

Chris Moy, chair of the Australian Medical Association's Ethics and Medico-Legal Committee, described TAL policy shift as "sad and disappointing".

"Just as doctors are preparing to step up and get ready from something very scary, some in the insurance industry appear to be stepping back from us," Dr Moy said.

"It's their financial choice to be doing that, but I'll let the court of public opinion decide whether this is a fair thing for them to be doing at this point in time."

TAL said it was too early to estimate the financial impact of the virus on its business.

"However, we do anticipate a higher level of future claims."