The civil case, which was brought by the Australian Securities & Investments Commission (ASIC) final yr, connected to AWP’s sale of Allianz-underwritten travel insurance procedures on Expedia-operated web-sites from February 2015 to September 2018, and to ASIC Act and Organizations Act violations.
Chief Justice Allsop, in his ruling, said: “The grievances manufactured by ASIC worried the carry out of the defendants offering increase to 4 discrete breaches of the ASIC Act and the Companies Act. All 4 breaches worried the internet marketing and sale of a single insurance policies product on the Expedia sites. The parties have agreed on the form of proposed declarations of contravention.
“The parties have further agreed on a suggestion as to the proper quantum of pecuniary penalty in relation to the statutory civil penalty provisions. With no contested troubles as to legal responsibility, at problem in these proceedings, consequently, is the variety the declarations ought to consider, and the mother nature of the amount of penalty that should to be imposed in light-weight of these contraventions.”
Read additional: Federal Courtroom orders Allianz, AWP to shell out penalties
Allianz told Insurance Enterprise that the two the insurance company and AWP self-reported the make any difference to ASIC in 2018. “Allianz and AWP worked with ASIC on a remediation package and earlier compensated 15,965 customers an amount of money totalling approximately $1,140,000 in remediation,” mentioned the spokesperson.
Equally camps, aside from remediating prospects, also took steps to address the circumstances which facilitated the breaches. The enterprise resulted in the termination of Allianz’s partnership with Expedia in November 2018. Allianz and AWP also carried out initiatives aimed at increasing compliance procedures.
“There was no true disagreement in between the functions as to the proper tactic and applicable principles in analyzing the acceptable penalty,” Allsop CJ went on to point out in the 30-web site ruling. “The issue for that reason results in being no matter if I am pleased that the proposed penalties are correct in the situations.”
As earlier claimed by Insurance Business, Allianz has been requested to shell out $360,000 AWP, a even larger amount of money of $1.14 million. The figures do not include things like the plaintiff’s costs, which the defendants are also mandated to pay back.
“Allianz and AWP cooperated thoroughly with ASIC to take care of these proceedings expeditiously, together with by producing admissions and not contesting the penalty sought by ASIC,” mentioned the Allianz spokesperson.