Allianz and Suncorp will refund $45.6 million and $17.2 million in add-on insurance premiums respectively, after ASIC found cover sold through car dealerships included policies that added little value to the client.
Both Allianz and the Suncorp-owned insurance firm MTA Insurance were found to have sold policies that clients were unlikely to be able to claim on, that they were already covered for under another policy, or that were more expensive than needed, the regulator found.
According to ASIC, this included the sale of life insurance to “young people who were unlikely to need the cover if they had no dependents”.
The refunds apply to premiums on Allianz’ motor equity insurance, loan protection insurance, tyre and rim insurance, and warranty insurance, as well as MTA Insurance’s MTA guaranteed asset protection insurance and MTA consumer credit insurance.
ASIC said it is working with both businesses to “see that improvements are made in the sale and design of add-on insurance products”.