Zurich hit with $37,560 ASIC penalty
Major insurer Zurich has been hit with two infringement notices totalling $37,560 for allegedly making false and misleading statements to two policy-holders regarding their entitlement to benefit payments.
The Australian Securities and Investments Commission (ASIC) said that in May 2024 Zurich declined two trauma insurance claims advising the policyholders that their particular medical conditions were excluded, and no benefit was payable.
ASIC alleges that these statements were false or misleading as the policy terms applicable to the trauma cover held by the policyholders did not exclude their medical conditions and they were entitled to a benefit payment.
Zurich discovered these errors following a quality assurance review and subsequently remediated the policyholders paying them their benefit entitlements with interest. Zurich also reported the matter to ASIC.
Zurich paid the infringement notices on 8 May 2025.
Insurance claims handling was a 2024 enforcement priority and failures by insurers to deal fairly and in good faith with customers is a 2025 enforcement priority.
No mention that there was an adviser in the clients corners, so it’s reasonable to assume it was one of Zürich’s direct products. There will be more of this BS when Mr Mollino let’s the Life insurers sell direct under general advice to the customers that we place with them in good faith