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