Allianz and AWP hit with criminal charges over alleged travel insurance misrepresentations

Allianz and AWP hit with criminal charges over alleged travel insurance misrepresentations

Criminal charges have been laid against Allianz Australia and AWP Australia, with the corporate watchdog alleging both made false statements about travel insurance products.

Allianz has been charged with seven counts, and AWP with one, of making false or misleading statements regarding the sale of Allianz domestic and travel insurance.

The Australian Securities and Investment Commission (ASIC) alleges between 2016 and 2018, Allianz and AWP published information online - including on Allianz's domestic, basic and comprehensive travel insurance web pages - that misrepresented the characteristics or level of coverage of travel insurance on sale to consumers.

The watchdog alleges, in some instances, the website advertised the maximum travel insurance benefits payable to customers, but failed to state that particular sub-limits, terms, conditions or exclusions could operate to limit those benefits.

As such, Allianz could be facing a maximum penalty of $8.1 million for each charge. If found guilty on all seven, the insurer could be hit with $56.7 million in fines.

Allianz was the underwriter of the travel insurance products and AWP was a distributor of the products.

ASIC's case was referred to the watchdog for investigation by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

So far the watchdog has undertaken a range of regulatory responses to the alleged conduct, including securing $10 million in customer remediation from Allianz and AWP for travel insurance potentially mis-sold to around 31,500 customers.

On 30 September 2020, ASIC commenced separate civil proceedings in the Federal court action against Allianz and AWP for allegedly misleading consumers on Expedia travel websites.

The matter is listed for further mention on 20 April, 2021 in Sydney.

Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Netflix NT drama series Territory to debut in October

Netflix NT drama series Territory to debut in October

Netflix is set to launch its next blockbuster Australian drama seri...

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express Australia (Amex) has been ordered to pay an $8 mil...

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Aboriginal and Torres Strait Islander readers are advised this arti...

From Michael Hill to Adore Beauty, retailers rise on positive sales results

From Michael Hill to Adore Beauty, retailers rise on positive sales results

A handful of retailers including jeweller Michael Hill Internationa...