CBA comments on CommInsure problems
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.
AUTHOR
Hope William-Smith
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
