ACBF Funeral Plans fined $1.2 million
ACBF Funeral Plans fined $1.2 million | Insurance Business Australia
Insurance News
ACBF Funeral Plans fined $1.2 million
Firm went bankrupt last year
Insurance News
By
Daniel Wood
The Federal Court has ordered a $1.2 million penalty against a company that sold funeral expenses insurance to Aboriginal people.
According to a media release from the Australian Securities and Investments Commission (ASIC), the firm, the Aboriginal Community Benefit Fund (ACBF) Funeral Plans, misrepresented the sale and promotion of the insurance.
The Court found that ACBF – part of the Youpla Group – “represented” to insurance holders that they would receive a lump sum payment of their chosen benefit amount for funeral expenses.
However, the company only reimbursed “for funeral related expenses up to the benefit amount upon production of proof that those expenses had been incurred.”
The regulator started its legal action in October 2020. Last year, both ACBF Funeral Plans and Youpla Group went into liquidation.
In August this year, ASIC commenced civil penalty proceedings in the Federal Court against five former directors and officers of ACBF Funeral Plans and Youpla Group for breaches of their duties.
Today’s ASIC release said the court did not accept some of their case against ACBF Funeral Plans. The court did not agree that ACBF had falsely represented that it was owned or managed by an Aboriginal person or persons, or that the ACF Plan had Aboriginal community approval.
The regulator said it is “carefully reviewing the judgement.”
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