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
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
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
- 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
- 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
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
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
What if I disagree with
If you are not happy with the refund offered by Allianz, you
should discuss this with them by calling 1300 548 165 or by
If you are not happy with how Allianz handles your complaint,
you can ask for it to be reviewed by their internal dispute
For tips on lodging a complaint, see how to
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
If you are not happy with Allianz's response to your complaint
you can contact the Financial Ombudsman Service on 1800 367 287 or
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
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
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
Last updated: 03 Sep 2018