MTA motor vehicle add-on insurance refunds
Are you owed a refund for MTA add-on
MTA Insurance is refunding up to $17.2 million to approximately
41,000 customers who bought add-on insurance through car
dealerships across Australia. The insurance was provided by MTA
Insurance, owned by Suncorp.
The refunds are being paid because customers were sold insurance
that provided little or no value.
Here we explain who is entitled to a refund and how to contact
MTA Insurance if you have any questions about the refund
Am I entitled to a
You may be entitled to a refund if you bought Guaranteed Asset
Protection (GAP) or Consumer Credit Insurance (CCI) that was
provided by MTA Insurance, when you bought a car from a dealer
between 2009 and 2017.
Refunds will be offered to customers who:
- were sold GAP insurance for a new car from 31 August 2011, and
their policy was still active on 1 September 2017
- were under 25 when they bought a CCI policy after 1 July
- bought both CCI and GAP insurance after 24 June 2010 and paid
off their car loan before 24 June 2016, or
- purchased 'Class D' GAP insurance between 15 December 2009 and
14 December 2015 but, when they bought the car, there was no gap
between the loan amount and the payout they would have received
from a comprehensive insurance policy if their car had been written
If you bought a car between 2009 and 2017, you should check if
you bought MTA GAP or CCI insurance.
MTA Insurance will write to all affected customers from 15
January 2018. If you don't receive a letter but you think you might
be eligible for a refund, you can contact MTA Insurance on 1800 571
921, or by emailing firstname.lastname@example.org.
SMS about refunds
If you are eligible for a refund, MTA Insurance will send you a
refund cheque. If you have not already received or deposited the
cheque, MTAI may contact you by SMS (text message).
You can verify the text by contacting MTA Insurance on 1800 571
What will my refund be?
If you bought a new car
If you bought a new car and have a MTA GAP insurance policy that
was active on 1 September 2017, you will be refunded some of the
premium you paid because:
- there was no gap to cover when you bought the car
- you were sold cover that was more expensive than you needed,
- you could have claimed a replacement vehicle under your
comprehensive insurance policy if your car was a total
If you were under 25
If you were under 25 when you were sold the MTA CCI insurance,
you can get a refund for the cost of the life and trauma element of
the insurance (unless you choose to keep the policy). This is
because you were unlikely to have had dependents who would rely on
the insurance to meet loan repayments if you died or could no
longer earn an income.
Before deciding whether you want to keep the policy, consider
whether you already have another type of insurance in
place. For example, you may have life insurance or income
protection insurance through your super
If you bought both CCI and GAP insurance
If you took out both MTA CCI and GAP insurance and have paid off
your loan early, you will be given a partial refund of the premium
you paid for the GAP insurance. This is because you no longer
needed the GAP insurance from the date you paid off your loan.
If you were sold MTA GAP insurance with a 'Class D' type of
policy, you will be refunded the premium because you would not have
been able to claim under the policy if your car was written
What if I disagree with
MTA's refund offer?
If you are not happy with the refund offered, you can discuss
this with MTA by calling them on 1800 571 921. If you are not happy
with how they handle your complaint, you can ask for it to be
reviewed by MTA Insurance's internal dispute resolution team.
For tips on lodging a complaint,
see how to complain.
If MTA takes more than 45 days to respond to your complaint, or
if you're not happy with the decision it makes, you should contact
the Financial Ombudsman Service on 1800 367 287 or visit
You can complain even if you accept the refund.
What if I am not covered by MTA's refund program?
MTA'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 MTA Insurance on 1800 634 294 or emailing email@example.com. If you
are not happy with MTA's response, 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. These include:
- GAP insurance - Covers the
lender for the difference between what you owe on the car loan, and
what the car is insured for under comprehensive car insurance, if
you write your car off. You can also buy 'purchase price gap
insurance' that's not linked to a loan. This type of gap insurance
pays you the difference between what your comprehensive car
insurance pays out, and what you paid for the car.
- CCI insurance -
Provides some cover if you can't meet the repayments on your loan
if you die, suffer a traumatic illness (such as cancer), or become
disabled or unemployed. If you need to claim, the money will go to
your lender, not you.
Why is ASIC concerned about add-on
ASIC is concerned that MTA's CCI insurance was sold to young
people who had no dependents and were unlikely to need the
ASIC is also concerned that MTA GAP insurance was sold to
customers who did not need it because:
- there was no gap to cover, for example because they paid a
- they already had similar cover under their comprehensive
- they were sold more insurance than they needed, or
- they did not receive rebates when they paid out their car loan
early, even though the cover under the policy had ended.
The MTA refunds are a direct result of ASIC's 2016 review of the sale of add-on
insurance through car dealers, which uncovered the wide-spread
sale of insurance with little or no value to customers.
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.
You may not have considered or even heard of all
the 'extra' insurance offered to you by a car dealer. Before you
sign up for add-on insurance, make sure you'll benefit from the
insurance or don't already have similar cover from your
comprehensive car insurance.
Last updated: 20 Apr 2018