A PYMNTS Company

New Zealand: Australian Insurance Group to pay $3.48m

 |  September 18, 2012

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.

Full Content: IBR

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.