Allianz add-on insurance refunds

Are you owed a refund for your Allianz car or motorbike add-on insurance?

Allianz is refunding up to $45.6 million to 68,000 customers who bought add-on insurance through car dealerships across Australia.

The refunds are being paid because customers were sold insurance that provided little or no value.

Here we explain what insurance products are being refunded, who is entitled to a refund and how to contact Allianz if you have any questions about the refund process.

Am I entitled to a refund from Allianz?

You may be entitled to a refund if you bought Allianz insurance products when you bought a car or motorbike from a dealer between 1 December 2010 and 30 November 2017.

The refunds cover the following four Allianz add-on insurance products:

  • Motor equity insurance (also known as GAP insurance) - which pays a lump sum to the lender to pay out the loan if your car is written off.
  • Loan protection insurance (also known as CCI insurance) - which can cover repayments on your loan if you die, suffer a traumatic illness (such as cancer), or become disabled or unemployed.
  • Tyre and rim insurance - which covers damage to the tyres and rims of your vehicle's wheels. 
  • Warranty insurance products (also known as mechanical breakdown insurance) - which provide cover for repairing or replacing parts of the car when they fail.

Check your car or motorbike loan documents if you're not sure whether you bought insurance, or what brand it is.

When will Allianz be contacting customers?

Allianz will write to all affected customers with details of its refund offer. We expect this will begin in late March or early April 2018. In the meantime, if you have any questions about how the refunds program affects your policy, you can call Allianz on 1300 548 165. 

If you receive a letter from Allianz but do not contact them for a refund, they will assume you would like to keep your policy and don't need a refund.

What will my refund be?

Allianz will offer refunds to customers in the following circumstances:

Motor equity insurance

You will receive a partial refund of your premium if you:

  • took out motor equity insurance on a new car and also had Allianz comprehensive motor vehicle cover. This is because you would have been unable to claim under your motor equity insurance if your car was written off and you received a replacement vehicle under your comprehensive insurance.
  • were sold more motor equity insurance cover than you needed. Your refund will be the difference between the premium you paid and the premium for the cheaper option.
  • bought both motor equity insurance and loan protection insurance, and you paid off your loan early. This is because you no longer needed the policy from the date you repaid your loan. (You should have already received a rebate of the loan protection insurance premium, as insurers must pay this under the law).

You will receive a full refund of your premium (unless you choose to keep the policy) if you paid a significant deposit when buying your car. This is because you would receive little or no value from your motor equity insurance policy. 

Loan protection insurance

If you were under 21 when you were sold the policy, you will be offered a refund for the cost of the life and trauma elements of the insurance (unless you choose to keep the policy). This is because you were unlikely to have had dependents who would need the car if you died or could no longer earn an income.

If you were sold the policy when you were self-employed or not in full-time permanent employment, you will receive a full refund of the 'involuntary unemployment' element of the premium. This is because you were sold cover that you could not claim under.

Tyre and rim insurance

You will receive a full refund of your premium if you had a claim denied because you had modified tyres and rims when you bought the tyre and rim insurance policy. This is because you would never have been eligible to claim and should not have been sold this insurance.

If you were sold a higher level of cover than you needed, you will receive a partial refund for the difference between the premium paid for the tyre and rim cover sold to you and the premium for the cheaper option available to you.

Warranty insurance products

If you purchased Allianz warranty insurance for a car with a 7-year manufacturer's warranty, you will receive a full refund of the premium (unless you choose to keep the policy). This is because many consumers are likely to trade their car in within the 7-year manufacturer's warranty, so would get no benefit from having extended warranty insurance, which starts after the manufacturer's warranty ends.

What if I disagree with Allianz's offer?

If you are not happy with the refund offered by Allianz, you should discuss this with them by calling 1300 548 165 or by emailing MyRefund@allianz.com.au.

If you are not happy with how Allianz handles your complaint, you can ask for it to be reviewed by their internal dispute resolution team.

For tips on lodging a complaint, see how to complain.

If Allianz takes more than 45 days to respond to your complaint, or if you're not happy with their decision, you should contact the Financial Ombudsman Service on 1800 367 287 or visit fos.org.au

You can complain even if you accept Allianz's refund.

What if I'm not covered by Allianz's refund program?

Allianz's refund program covers customers ASIC has identified were sold insurance with little or no value.

However, other customers may also be entitled to a refund. For example, you may have bought the policy because the sales person said you had to buy the insurance to get the loan.

You can raise concerns about your policy or how it was sold to you by calling Allianz on 131 000 or lodging a complaint online at allianz.com.au 

If you are not happy with Allianz's response to your complaint you can contact the Financial Ombudsman Service on 1800 367 287 or visit fos.org.au

You can also receive information or help from:

What is add-on insurance?

There are many different types of add-on insurance policies that might be sold to you when you buy a car at a car yard. To find out more, see our page on add-on insurance

Why is ASIC concerned about add-on insurance?

ASIC is concerned that Allianz sold add-on insurance that provided little or no value to customers because:

  • some customers were sold a policy they were unlikely, or unable, to make a claim on
  • the motor equity insurance policy duplicated existing cover from comprehensive insurance policies
  • customers were sold more insurance than they needed, or
  • customers did not receive a rebate on their motor equity insurance policy when they repaid their loan early.

To find out more, see ASIC's media release.

Other refunds following ASIC's investigation into add-on insurance

ASIC has identified unfair conduct by a number of insurers who offer add-on insurance and extended warranties by car dealers or finance brokers. As a result, these insurers have agreed to refund over $120 million to customers who were sold these products.

For more information, see refunds for unfair sales of add-on insurance.

Before you buy add-on insurance from a car dealer, find out what insurance you already have so you don't get more cover than you need. If you do decide to get add-on insurance, make sure you understand its benefits and exclusions and consider paying for it up-front instead of adding it to the cost to your loan.


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Last updated: 13 Feb 2018