Masterclass, Money

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

Published on August 3, 2017 3:34 am, by

QBE Insurance has agreed to refund $15.9 million in insurance premiums to more than 35,000 policyholders. The insurance policies were sold through car dealerships and provided little or no benefit to customers.

The policies were QBE Guaranteed Asset Protection and Consumer Credit Insurance and were sold between 2011 and 2017.

The QBE Guaranteed Asset Protection policies were sold where there was unlikely to be a difference between the insured value of the car and the customer’s loan balance or the cover duplicated existing cover held by the customer or provided the customers with more insurance than they needed.

The QBE Consumer Credit Insurance was sold to young people with no dependents and were unlikely to need the cover provided by the insurance.

Affected customers are likely to receive a refund or partial refund of the premiums they paid.

QBE will write to all affected customers and ask them to confirm they want a refund, rather than keeping the policy. Customers with questions about their cover should contact QBE via phone: 1300 022 509, email: addonrefunds@qbe.com or on their website: qbe.com.au/addoninsurancerefunds

MoneyBrilliant has also contacted any MoneyBrilliant customers we believe may be affected.

Further information is also available from ASIC.

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Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.

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