CommInsure fined $300,000

CommInsure will be paying $300,000 towards customer advice service following Australian Securities and Investments Commission (ASIC)’s raised concerns regarding misleading life insurance advertising.

The regulator’s investigation into CommInsure that began in April last year (prior to the Commonwealth Bank of Australia’s sale of it to AIA Australia) found, on review of its Total Care Plan and Simple Life Insurance policies, evidence of misleading and deceptive advertising that will see the business’ advertising sign-off process independently reviewed.

“The review looked at advertising from mid-2013 to March 2016 and found that misleading and deceptive statements are likely to have been made on some of CommInsure's websites about the extent to which customers would be entitled to cover for trauma if they suffered a heart attack,” ASIC said.

Related News:

“The statements may have led a policyholder to believe they would be entitled to a lump sum payment if they suffered a heart attack in general, when in fact only certain types of heart attacks, which met certain medical criteria as defined in the policy, were covered.”

The regulator confirmed it has concluded its investigation into the life insurance business of CommInsure, with the company set a deadline of 30 June 2018 to report back to ASIC on changes implemented after the review.

Related Content

APRA inquiry net captures former CBA executives

Former Commonwealth Bank (CBA) executives and board members have found themselves captured by the Australian Prudential Regulation Authority’s (APRA...more

AMP pays $14.7 million in compensation

An Australian Securities and Investments Commission (ASIC) investigation has seen AMP pay $8.4 million of the further $21.4 million in compensation re...more

CBA hits back at ASIC over BBSW allegations

The Commonwealth Bank of Australia (CBA) is fighting back against the multitude of regulatory allegations being hurled at it, saying that it is r...more




Another dodgy FSC member and $300k is a joke, they probably made much more than this through misleading customers. Bring on the Royal Commission into these FSC member practices.

Add new comment