ASIC receives a salary of $ 10 million for Alliance Travel Insurance customers

ASIC receives a salary of $ 10 million for Alliance Travel Insurance customers

Australia’s corporate watchdog has received $ 10 million in compensation for alleged misleading Alliance insurance customers on websites including Expedia.

The Securities and Exchange Commission of Australia (ASIC) has taken action on Alliance Insurance and Alliance Global Assistance (also known as AWP).

The settlements come in the wake of ASIC’s announcement in September that it had initiated court action against the Alliance and AWP for misleading consumers on Expedia travel websites.

The insurance was sold to 31,500 consumers through the Alliance website and its distribution partners, including Expedia.

The Alliance sells travel insurance through its own website, the AWP website, and a number of channels, including airlines, financial institutions and travel agencies.

The $ 10 million refund is for various types of misconduct accepted by the Alliance and AWP:

  • Sale of policies to ineligible consumers
  • Partially paid travel insurance claims
  • Sales of policies on Expedia websites were higher than policies sold separately for premiums

Karen Chester, ASIC Executive Chair, said the Corporate Monitoring Committee “has taken steps to ensure that customers are fully resolved.”

“Insurers need to be careful not to mislead consumers into thinking they have an insurance premium when they are not there,” Ms Chester said.

“ASIC did not initiate civil action on one aspect of the conduct, but ensured that more than 31,000 consumers were fully corrected.”

In response to the actions, Alliance and AWP removed misleading or deceptive statements from their websites and their associates, paid part of the money to travel insurance customers, and refunded premiums with interest to customers who purchased travel insurance. Alliance own website or websites of its affiliates.

Consumers concerned about travel insurance purchased from Alliance or its partners between June 2012 and November 2018 can visit the Alliance Travel Insurance website review website for more information on the settlement plan.

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Cory Weinberg

About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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