Four million dollars is being paid out to customers affected by the updates to CommInsure’s policy definition of a heart attack, and a further $300,000 will be donated to the Insurance Law Service in the form of a Community Benefit Payment following the Australian Securities and Investments Commission’s (ASIC) investigation into misleading conduct at CommInsure, said the Commonwealth Bank of Australia (CBA).
In a statement released on Monday, CBA acknowledged ASIC’s investigation into misleading and false advertising in its Total Care Plan and Simple Life Insurance policies, and said the advertising was produced primarily for financial advisers.
“In March 2016, CommInsure updated its Heart Attack definition back to May 2014 and made further changes by backdating that definition to October 2012 in March this year,” the statement said.
“As a result, CommInsure has paid 32 customers around $4 million after reviews of claims against the updated definitions.”
It was announced in September that life insurance market leader AIA Australia would acquire CommInsure from CBA.
Money Management has been informed by AIA that the transaction of the business remained subject to regulatory approval.