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New Zealand: Australian Insurance Group to pay $3.48m

By  |  September 18, 2012
New Zealand: Australian Insurance Group to pay $3.48m

Insurance Australia Group (IAG) New Zealand and the Commerce Commission have reached a $3.48m compensation settlement agreement over potential violation of the Fair Trading Act over insurance policies. IAG undervalued the sum insured in 643 previously paid out total loss insurance claims due to the problem, while the same error is now expected to affect the renewal of 150,755 current policies, says the regulator. It was discovered that in some cases the policies affected dated back to 1980, and include a sum insured which was to be automatically adjusted each year to reflect rising inflation.

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