Australian court docket orders Allianz pay $1.1 mln penalty for travel insurance profits

Flags with the symbol of Allianz SE, Europe’s greatest insurance provider, are pictured right before the firm’s annual shareholders’ conference in Munich, Germany May perhaps 3, 2017. REUTERS/Michaela Rehle

Sept 7 (Reuters) – An Australian court fined regional units of Allianz SE (ALVG.DE) for selling journey coverage to ineligible prospects and not correctly disclosing how it calculated rates on Expedia (EXPE.O) internet sites, the country’s corporate watchdog stated.

Two units of German insurance company Allianz had been on Monday fined a total of A$1.5 million ($1.12 million) in a civil scenario brought by the Australian Securities and Investments Fee (ASIC) in September very last year.

The units, Allianz Australia and AWP Australia, committed A$10 million in October past yr to compensate all-around 31,500 shoppers who were offered most likely incorrect journey insurance coverage by Allianz’s personal web page and Expedia, ASIC stated.

Allianz Australia issued the journey insurance while AWP taken care of its sale.

“The insurance policy market demands to be transparent and exact when marketing and endorsing their solutions,” ASIC Deputy Chair Sarah Courtroom claimed in a assertion.

ASIC stated the courtroom took into consideration the early admission by the Allianz businesses in determining the penalty.

The German organization reported it self-described the matter in 2018 and did not contest the penalty sought by the ASIC.

“Allianz and AWP welcome the finalisation of this matter,” Allianz reported in an emailed statement.

The two models also deal with separate felony rates for allegedly building inaccurate statements amongst 2016 and 2018 when marketing equally domestic and intercontinental travel insurance coverage.

($1 = 1.3444 Australian bucks)

Reporting by Nikhil Kurian Nainan in Bengaluru Editing by Sandra Maler

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