QBE re­fund on dodgy poli­cies

Townsville Bulletin - - NEWS -

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.

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