Backlash builds against insurance tactics

Insurance company Youi is facing new misconduct allegations in Australia, shortly after falling foul of the New Zealand regulator.

Australian Fairfax investigations into the insurance firm have revealed customers there reporting similar tactics to that which caused it to get into trouble here.

More than 140 customers said the company had taken their money without authorisation or signed them up for fraudulent policies. The company has rejected the allegations.

The Australian regulator, ASIC, has now launched an investigation.

In New Zealand, Youi has agreed to plead guilty to 15 charges relating to misleading sales practices.

The Commerce Commission said it made false or misleading representations on its website regarding consumers’ ability to obtain a quote online, made false statements to customers during phone sales calls, including telling them a card number was needed for a quote, and sent letters demanding payment for unsolicited insurance policies.

Youi offers car and home insurance that it says is tailored to customers’ needs because it asks a lot of questions about their specific circumstances.

But critics have said that policy is designed to give the insurer more ways to decline any potential claims, on the basis that false or incorrect information was given.

Youi has been approached for comment.

The worst Youi stories from Australia

1. I did not want a policy, Youi signed me up for three – Mary* called for a house insurance quote. Youi billed her for the house and both her cars – and put conditions on one car that it couldn’t be driven for work or study. When she called to demand a refund, Youi told her she could get one by cancelling her car insurance policies with her other insurer. 2. Youi rewrote my policy to charge me more – Dan* had two cars insured with Youi. He noticed Youi had steeply increased his premiums for a year, without telling him. When he asked why, he discovered Youi had changed him from a personal to a business customer, increasing his premiums. 3. Youi made up all my policy details – Shaun*is listed on his Youi policy as a voluntary worker who drives to work five times a week, does not ride a bike, and has all his cars locked up at home. ‘‘I never said any of this,’’ he says. After putting this to Youi, the company is trying to charge him a cancellation fee. 4. Youi told me they would not insure me, then billed me anyway – Ned* Youi told Ned they would not insure his property because he was in a flood zone. When he checked his statement he discovered they had taken $868 out anyway. They told him they would pay it back – and refunded him $595. 5. Youi would not let me cancel – Nathan* cancelled his Youi policy. They kept billing him. When he queried it, they asked him to prove he was insured with someone else by sending in his policy. He’s still out of pocket $400. ‘‘They have never given back my money’’. 6. I did not have a car, but I had insurance – Don* sold his car, and called Youi to cancel his insurance. They billed him anyway. He complained, and they said it was to maintain his no-claim bonus. He ended up getting only 60 per cent back. 7. We never even bought the car we were insured for – Jasmine* Jasmine’s partner called to get a quote for insurance on a car he was thinking about purchasing. He did not go through with the sale, but his insurance somehow did. Youi refused to give him a refund. 8. Had to threaten legal action to stop cold-calls – Craig* Craig asked for a quote. It was too high, and he said so. He got 19 cold calls from Youi trying to pressure-sell him into it. He had to threaten legal action to get them to stop. 9. The original salesman calls again – Lyn* asked for a quote, and instead got billed for a policy she did not want. She cancelled it. The original salesman called her, asking what had gone wrong and offering her a big discount. 10. A year later, Youi still have not refunded me – Doreen* cancelled her Youi policy. She says she got many harassing phone calls trying to make her sign back up. She refused, but Youi billed her anyway. After pursuing the company further, she finally received a refund. After checking her statements on reading a Fairfax story, she discovered they still hadn’t refunded her the full amount. 13. Sales representative told me to lie – Andrew* asked for a quote, but the premium was too high. His sales representative told him to change details about car ownership and how often he drives it. Names have been changed