QBE refund on dodgy policies
INSURANCE giant QBE will pay up to $ 15.9 million in refunds for add- on car insurance which provided little or no benefit. In a review of add- on insurance by the Australian Securities and Investments Commission in 2016, QBE was found to have sold guaranteed asset protection ( GAP) and consumer credit insurance ( CCI) to more than 35,000 people between 2011 and 2017 who were unlikely to need insurance.
GAP insurance covers a car owner for the difference between the amount they owe on the car loan and the amount the car is insured for, while CCI is promoted to help borrowers meet repayments if they lose their income or die.
ASIC found QBE GAP duplicated existing cover and CCI insurance was found to have been unnecessary.