30,000 Australians to get money back on add-on insurance
ASIC orders six insurers to refund $14.7 million to Aussie consumers.
The saga continues for Australian insurers who sold unnecessary insurance products to consumers, with the Australian Securities and Investments Commission (ASIC) ordering six companies to refund $14.7 million in premiums to customers. This brings the grand total to over $130 million being refunded to more than 245,400 consumers.
The latest six insurers to be ordered to repay customers by ASIC on 19 June 2019 are:
|Insurer||Number of consumers affected||Amount being refunded|
|Aioi Nissay Dowa Insurance Company Australia Pty Ltd (ADICA)||16,596||$7.2 million|
|Eric Insurance Limited (formerly AVEA Insurance)||5,232||$3.37 million|
|Sovereign Insurance Australia Pty Ltd||1,858||$1.37 million|
|Virginia Surety Company, Inc. (Virginia Surety)||4,026||$1.7 million|
|LFI Group Pty Ltd (insurer for Liberty Finance)||2,001||$951,700|
|NM Insurance Pty Ltd, an underwriting agency, and three insurers - The Hollard Insurance Company Pty Ltd, AAI Limited (a member of the Suncorp Group) and AIG Australia Limited||287||$143,700|
These insurers joined the list of other insurers that have already refunded premiums to consumers including Allianz, National Warranty Company, QBE, Suncorp and Swann.
If you took out a loan to buy either a car or motorcycle and were sold add-on insurance, you might want to check if your insurance was provided by one of the insurers named above, says ASIC Commissioner Sean Hughes.
"Many people who bought a car or motor bike with add-on insurance may be entitled to a refund. We encourage people to check and contact their insurers," Hughes said in a statement.
If you think you may have bought one of these products, you should contact your insurer or you can head to ASIC's MoneySmart website for more information.