Insurance giant Allianz charged over ‘misleading’ advertising

Insurance giant Allianz has been charged with seven criminal offences for travel insurance ads that the corporate watchdog claim were false or misleading.

The Australians Securities and Investments Commission alleges that between 2016 and 2018 Allianz and its distributor AWP published information online that misrepresented the level of coverage of their travel insurance.

ASIC has referred the allegations, which carry multimillion-dollar fines, to federal prosecutors.

Allianz has been charged with seven counts, and AWP Australia with one count, of making false or misleading statements, which carries a maximum penalty of more than $8 million for each charge.

“In some instances, ASIC alleges that Allianz’s website advertised the maximum travel insurance benefits payable to customers, but failed to state that particular sub-limits, terms, conditions or exclusions could operate to limit those benefits,” ASIC said in a statement.

Allianz was the underwriter of the travel insurance products and AWP a distributor.

Both companies appeared at the Downing Centre Local Court in Sydney on Tuesday and are next due in court for further mention on April 20.

Source: The Age