Good news for Allianz and Suncorp customers – $62.8 million to be refunded
<p><span>Allianz Australia and Suncorp will refund customers a combined value of $62.8 million for selling add-on insurance premiums that had little to no value.</span></p>
<p><span>Allianz will pay back $45.6 million to 68,000 customers, while Suncorp (providing policy by MTA Insurance) will refund $17.2 million to 41,428 customers.</span></p>
<p><span>The Australian Securities and Investments Commission (ASIC) started an investigation due to concerns with Allianz Insurance add-ons being sold through car dealerships between December 1, 2010 and November 30, 2017.</span></p>
<p><span>ASIC found that four Allianz add-on products were unbeneficial to customers: Motor Equity Insurance (MEI), Loan Protection Insurance (LPI), Tyre and Rim Insurance (TRI) and Warranty Insurance products.</span></p>
<p><span>Suncorp’s sale of its MTA Guaranteed Asset Protection or GAP insurance between 2009 and 2017 were found to have duplicated cover provided by a driver’s comprehensive car insurance and sold at a price deemed too expensive.</span></p>
<p><span>ASIC’s Acting Chair Peter Knell said the refunds are a warning to insurers to make sure their products add value to customers.</span></p>
<p><span>"The refunds offered by Allianz, together with those from other insurers, make up one of the largest compensation programs achieved by ASIC, with over $120 million in refunds to consumers as a result of ASIC shining a spotlight on these poor consumer outcomes," said Knell.</span></p>
<p><span>"Add-on insurance has been under the spotlight for some time now. Insurers should be taking active steps to ensure their customers are not being sold products that provide little or no value."</span></p>
<p><span>Allianz and Suncorp follow Virginia Survey, QBE and Swann Insurance who have been caught by ASIC’s investigation into add-on insurance rip offs.</span></p>
<p><span>In June, Virginia Survey was forced to refund $330,000, in August, QBE was ordered to refund $15.9 million and in December, Swann Insurance was told to refund $39 million.</span></p>
<p><span>Allianz and MTA Insurance have started writing to affected customers. </span></p>
