Allianz Australia and its subsidiary AWP encounter prison rates accusing them of creating fake or deceptive statements on a selection of domestic and worldwide travel insurance coverage solutions in between 2016 and 2018.
Allianz was the underwriter of the products and solutions and AWP the distributor that marketed the procedures to customers, the Australian Securities and Investments Fee (ASIC) explained in a assertion now.
The insurance provider faces 7 counts of untrue or deceptive representations and AWP has one related charge from it.
The prices allege that Allianz and AWP “published info on-line, which include on Allianz’s domestic, simple and extensive journey coverage net pages, that misrepresented the characteristics or amount of protection of vacation insurance plan on sale to shoppers,” according to the assertion.
“In some circumstances, ASIC alleges that Allianz’s web-site advertised the maximum travel insurance benefits payable to shoppers, but failed to condition that particular sub-limits, conditions, situations or exclusions could run to limit all those benefits.”
The scenario is detailed for even further point out on April 20 soon after the two firms appeared currently at the Downing Centre Regional Court docket in Sydney.
The felony proceedings appear soon after the regulator declared very last October it experienced secured $10 million in remediation from the insurance company and AWP for journey insurance policy goods that were “potentially mis-sold” to some 31,500 shoppers. The solutions were marketed by Allianz’s possess web site and its distribution partners together with Expedia.
The remediation is not an admission by either Allianz or AWP that they have breached the regulation.
ASIC suggests the felony fees filed nowadays are element of its regulatory responses soon after the Hayne royal commission referred the insurer’s alleged misconduct to the regulator. The charges are independent to the civil proceedings lodged in the Federal court against Allianz and AWP for allegedly deceptive consumers on Expedia vacation websites.
A spokesman for Allianz explained to insuranceNEWS.com.au the insurer will make no further remark on the criminal proceedings as the subject is now before the court docket.
“Allianz has acknowledged the shortcomings in relation to the sale of journey insurance coverage merchandise on some internet websites, as discovered throughout the royal fee,” the spokesman mentioned.
“A overview undertaken by Allianz in 2018 highlighted challenges relating to the identification or description of the restrictions, sub-limits and exclusions that would implement to unique insurance policies. The website written content has because been dealt with.
“Since the royal fee, Allianz has undertaken a complete program to fortify our organisational governance, such as even further investing in threat and compliance and refining our product or service offerings with the purpose of achieving the finest outcomes for our customers.”