AAMI let off lightly, says MP
A FEDERAL MP has slammed the financial industry watchdog for “whitewashing” an investigation into an insurance giant’s handling of claims after the 2015 Wye River bushfires.
Corangamite federal Lib-
“You feel like you’re helping out. The patients have got needs that mean they can’t travel by train or public transport — because of the illness they could catch infections,” he said.
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Morrie Griffiths, 74, was diagnosed with leukaemia a year ago and has been using the service once a week for eight months to get to St Vincent’s Hospital for treatment.
“It’s taken such a load off our shoulders,” Morrie’s wife, Nanette, said. “They come, pick us up, drop us off right at the door and disappear until I ring them to say we’re finished and ready to go home.”
To find out more about volunteering for the vital service, contact 1800 620 420. eral MP Sarah Henderson hit out at the Australian Securities and Investments Commission yesterday, after its inquiry into whether AAMI had shortchanged homeowners covered by its Complete Replacement Cover policy.
AAMI was made to pay $43,200 for making false and misleading statements about a home-insurance policy following the investigation.
ASIC yesterday told a House of Representatives economics committee it only had the power to fine AAMI the $43,200 for misleading advertising due to an exemption in the Corporations Act.
Ms Henderson criticised the watchdog for not speaking out earlier about the limitation.
“While justice was eventually done with AAMI agreeing to negotiate acceptable payouts, its inquiry under former chair Greg Medcraft was a whitewash,” Ms Henderson said.
“Today, when I raised this issue at the public hearing into ASIC, I was disappointed with ASIC’s response. While it found that AAMI Insurance had misled consumers and fined AAMI accordingly, I do not believe that ASIC ever appropriately addressed AAMI’s conduct.
“If changes in the law were required, why didn’t ASIC say something at the time?”
AAMI owner Suncorp is one of two insurers called on to appear at the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry next week. The commission will hear case studies stemming from four natural disasters — including the Wye River bushfires.