Swann add-on insurance refunds
Are you owed a refund for your Swann
Swann Insurance is refunding $39 million to 67,960 customers who
bought add-on insurance through car dealerships across
Here we explain what insurance products are being refunded, who
is entitled to a refund and how to contact Swann if you have any
questions about the refund process.
Am I entitled to a refund from
You may be entitled to a refund if you bought Swann insurance
products when you bought a car or motorbike. Check your
car or motorbike loan documents if you're not sure whether you
bought insurance, or what brand it is.
Not all customers are entitled to a refund, and some customers
will need to decide whether to keep the cover under their policy or
cancel it and get a refund.
Swann will email all affected customers with details of its
offer from the beginning of February 2018. If you don't receive an
email, but you think you might be eligible for a refund, you can
contact Swann on 1300 149 292 or by emailing firstname.lastname@example.org
Swann will be offering these refunds until 30 September
2018. If you receive an email from Swann 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 insurance products are included in the refunds?
The refunds cover the following six add-on insurance
- GAP insurance
- Purchase price protection insurance
- Loan protection insurance
- Walkaway insurance or Protection Plus insurance
- Tyre and rim insurance
- Mechanical breakdown insurance (MBI).
What will my refund be?
Swann will be offering either a full or partial refund of the
premiums you have paid.
All refunds will include interest.
What if I disagree with Swann's refund offer?
If you are not happy with the refund offered by Swann, you can
contact them on 1300 149 292 or by emailing email@example.com
If you are not happy with how Swann handles your complaint, you
can ask for it to be escalated to their internal dispute resolution
If Swann takes more than 45 days to respond to your complaint,
or if you're not happy with how it has been handled, you should
contact the Financial Ombudsman Service on 1800 367 287 or visit fos.org.au.
You can complain even if you accept Swann's refund.
What if I'm not covered by Swann's refund program?
Swann'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 Swann on 1300 307 926 or emailing
If you are not happy with Swann'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:
The Consumer Action Law
Centre (Victoria only)
The Insurance Law
Why is Swann refunding
The refunds are being paid because Swann sold add-on insurance
that provided little or no value to customers. The insurance
provided little value because:
- some customers were unlikely to be able to make a claim as
their car was insured for more than the amount they borrowed
- the cover under the GAP policy duplicated existing cover from
comprehensive insurance policies
- customers were sold more insurance than they needed
- customers did not receive a rebate under their GAP policy when
they paid off their loan early.
To find out more, see ASIC's media
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
- 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. Walkaway or loan termination insurance is
also a type of CCI that covers the difference between what you owe
on your loan and the market value of the car if you return it
because you can no longer make repayments due to illness or injury,
or for other reasons listed in the product's terms and
- Tyre and rim insurance
- Covers damage to tyres and rims that occur as a result of
blowouts, punctures and various road hazards (like driving over a
- Mechanical breakdown
insurance (MBI) - Provides some cover for repairing or
replacing parts of the car due to mechanical failure after the
manufacturer's or dealer's warranty expires. Sometimes MBI is
called extended warranty insurance, because it commences after your
new car warranty ends.
Why is ASIC concerned about add-on
The Swann add-on insurance refunds are a direct result of ASIC's 2016 review of the sale
of add-on insurance through car dealers, which uncovered the
widespread sale of insurance with little or no value to
ASIC's review found that customers received low payouts compared
to the high premiums they paid. The payouts were also much less
than the commissions car dealers received for selling them the
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