AA Insurance fined over misleading no-claims bonus offer
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AA Insurance (AAI) has been ordered to pay a multimillion-dollar penalty for misleading customers and overcharging them to the tune of $11 million.
The High Court imposed a near $6.2m penalty on the insurer for failing to apply multi-policy and membership discounts, as well as guaranteed no-claims bonuses.
The Financial Markets Authority (FMA), which took action against the insurer, said the breaches primarily arose out of poor systems and processes.
The High Court ruled that between 2015 and 2020, AA misled customers about its multi-policy discount offer and misrepresented that certain eligible customers would receive its guaranteed no-claims bonus for life.
"While [AAI's] marketing material represented existing policyholders who added another policy would receive the disco...









