was there a scandal regarding this?
Yes, it was reported alleged systemic issues about the insurance division of CBA.
Commonwealth Bank
It was reported alleged systemic issues about the insurance division of CBA. A claimant who suffered a heart attack and nearly died had his claim declined based on an outdated medical definition in his insurance policy. 
who is harry cobby? A military aviator and an Air Commodore. where is he from? Australia. how did he start his early career? He was a bank clerk in the beginning. Later he joined the AFC. which bank did he work for? The Commonwealth Bank. when was this bank founded? In 1911.
wiki:5061934
Commonwealth Bank [SEP] Insurance division scandal
It was reported alleged systemic issues about the insurance division of CBA. A claimant who suffered a heart attack and nearly died had his claim declined based on an outdated medical definition in his insurance policy. The company admitted this decision was a bad judgement. The insurer also "refused to pay total permanent disability (TPD) and terminal illness claims on the chance that a dying person facing organ failure may have their life saved by a transplant, and that a person can claim their life insurance if they are declared terminally ill by two doctors and deemed likely to die within 12 months." In March 2016, ASIC announced it would be investigating CBA about the allegations.