Optus set to refund $2.4 million to mobile phone insurance customers

Alex Kidman 12 July 2016

Optus

If you purchased an Optus Mobile Phone insurance product, a refund may be coming your way.

Optus will refund $2.4 million to around 175,000 customers who may have been misinformed about the inclusions and offers for a mobile phone insurance product. ASIC notes in a media release that the telco reported itself to the regulator about a potential breach in its duty of disclosure to customers who purchased mobile phone insurance, either in stores or over the telephone. Optus failed to provide customers with a Product Disclosure Statement and a Financial Services Guide, as well as certain issues where, according to ASIC customers:

  • did not receive one month free insurance under a promotional offer they were entitled to;
  • were incorrectly charged a premium for insurance during a ‘rain-check’ period;
  • were not provided with the required information before purchasing an insurance policy over the telephone (e.g. information about excesses and cooling-off rights);
  • were issued the wrong cover. Some customers received ‘Device Insurance’ cover instead of the more favourable and less expensive 'Yes Cover’.

Optus will contact some 500,000 potentially overcharged customers, with an estimated 175,000 customers set to receive some level of refund. The total refund pool is estimated at $2.4 million. Optus will also appoint an external investigator to review its insurance compliance to ensure no further breaches occur.

Latest mobile plan deals on finder

When will you get the NBN?
When will you get the NBN?

Find out when the NBN is coming to your area with our tracker.

More info...
Compare iPhone 7 plans
Compare iPhone 7 plans

Compare iPhone 7 plans from Telstra, Optus, Virgin and Vodafone.

More info...
Need more data?
Need more data?

Find plans with more than 10GB from Telstra, Optus, Virgin and more.

More info...
Kogan Mobile: 30% off 365 day plans
Kogan Mobile: 30% off 365 day plans

Kogan Mobile's latest price blitz offers huge savings if you buy big.

More info...

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback