Suncorp has agreed to refund $17.2 million in insurance premiums to more than 41,428 policyholders. The insurance policies were sold through car dealerships and provided little or no benefit to customers.
The policies were sold by MTA Insurance which is owned by Suncorp.
The affected products include both Guaranteed Asset Protection and Consumer Credit Insurance and were sold between 2009 and 2017.
The issues with the Guaranteed Asset Protection policies included:
- it being unlikely that customers would be able to claim on the policies because the insured value of the car was more than the amount borrowed
- the cover duplicating existing cover held by the customer
- customers being sold more expensive insurance than they needed
- customers not receiving rebates when they paid out their loan early even though cover under their policies had ended
Issues with the Consumer Credit Insurance included customers being sold life cover they were unlikely to need if they had no dependents.
MTA Insurance/Suncorp is contacting all affected customers. Affected customers are likely to receive a refund or partial refund of the premiums they paid.
Customers with questions about their cover should contact MTA Insurance/Suncorp via phone: 1800 571 921 or email: firstname.lastname@example.org
Further information is also available from ASIC.
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