Allianz pleads guilty to false statement criminal charges
Allianz pleads guilty to false statement criminal charges
15 June 2022
Allianz Australia and its subsidiary AWP have pleaded guilty to criminal charges of making false or misleading statements in relation to travel insurance, the Australian Securities and Investments Commission (ASIC) said today.
The pleas were lodged before the Downing Centre Local Court in Sydney yesterday, with the matter committed to the Supreme Court and listed for arraignment on August 5.
Allianz Australia pleaded guilty to six charges and AWP to one charge in matters that became the subject of a case study examined by the Hayne royal commission.
ASIC says the charges relate to the sale of domestic and international travel insurance products and statements published online on various web pages hosted and maintained by Allianz and AWP. The subsidiary marketed, sold and managed various travel insurance products on behalf of the insurer.
“Between 2016 and 2018, Allianz and AWP misrepresented the characteristics or level of coverage of travel insurance available for consumers,” ASIC said.
“In some instances, the Allianz website advertised the maximum travel insurance benefits payable to consumers, but then failed to state that sub-limits, terms, conditions or exclusions would limit those benefits.”
ASIC has already secured $10 million in customer remediation from Allianz and AWP for travel insurance potentially mis-sold to around 31,500 consumers through the insurer’s website and those of distribution partners, including Expedia.
The Federal Court last year ordered Allianz Australia and AWP to pay $1.5 million in penalties for mis-selling travel insurance policies through Expedia websites in civil proceedings.
The maximum penalty for each criminal contravention of s1041E of the Corporations Act is the greater of $8.1 million, or three times the total value of the benefits gained, or 10% of “the body corporate’s annual turnover” during a determined 12-month period.
