Masterclass, Money

Insurers are refunding another $14.7m in premiums for useless insurance

Published on June 22, 2019 3:31 am, by Pete Lalor

During the week ASIC announced they had reached agreements with another 6 insurers to refund another $14.7m in premiums paid by consumers for add-on insurance sold through car dealers that was either useless or of little value.

The affected insurers this time are:

• Aioi Nissay Dowa Insurance Company Australia Pty Ltd (ADICA) who sell insurance products under the Toyota brand
• Eric Insurance Limited (formerly AVEA Insurance)
• Sovereign Insurance Australia Pty Ltd
• Virginia Surety Company, Inc. (Virginia Surety)
• LFI Group Pty Ltd (insurer for Liberty Finance)
• 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

The insurance policies affected include:

• Guaranteed Asset Protection (GAP) Insurance
• Consumer Credit Insurance (CCI)
• Mechanical Breakdown Insurance (also known as Extended Warranty)

This brings the total refunded for this type of insurance to more than $130m.

Customers who think they may be entitled to receive a refund but haven’t been contacted by the insurer are encouraged to contact the insurer themselves.

This is not the first set of refunds like this – there have been lots more of them. Check the related documents for other examples where you might have been entitled to a refund.

Further information is also available from ASIC.

At MoneyBrilliant, we’ve got your back. We’ve automatically contacted MoneyBrilliant customers that might be entitled to a refund. It’s all part of the MoneyBrilliant service. To make sure you know about refunds you might be entitled to sign up now at moneybrilliant.com.au

Related documents

Here we go again…National Warranty Company to refund $4.9m to 6,367 customers

Allianz to refund $45.6m to 68,000 customers sold useless insurance

Suncorp to refund $17.2m for useless insurance

QBE to refund $15.9m in premiums paid for useless insurance

Virginia Surety to refund over $330,000 to insurance policy holders