Eric Insurance has been working with the Australian Securities and Investment Commission (ASIC) to address concerns about the past sale of motor vehicle add-on insurance through motor dealerships.
Following discussions with ASIC, Eric has agreed to provide certain refunds to a number of customers for the sale of products sold up until April 2019.
Eric is committed to addressing the concerns raised by ASIC by providing insurance products that:
- provide value for customers,
- are offered through a transparent and fair sales process through our distributors, and
meet community and regulatory expectations which will benefit customers.
To do this, we have engaged in the following initiatives over the past 24 months:
- Reductions in commissions paid to motor dealers for certain products and consequently, reduction in premiums;
- Increased training, guidance, monitoring and supervision of motor dealers;
- Introduction of a customer centric selling platform in motor dealerships for greater transparency to help customers make better informed insurance decisions.
We have identified customers we believe may have purchased cover which may not have been suited to their circumstances and others that we inadvertently did not cancel their cover when we became aware it no longer remained necessary. The remediation program involves motor add-on insurance products sold between February 2014 and April 2019 and includes holders of the following policies:
- Guaranteed Asset Protection (GAP) Insurance
- Consumer Credit Insurance (CCI)
- Loan Termination Insurance (LTI)
- Return to Invoice (RTI) Insurance
- Extended Warranty Insurance (WAR)
We have assessed our obligation and expect to refund almost $3.4million to customers.
Eric is in the process of contacting customers entitled to a partial or full refund or an offer, plus additional compensatory interest, subject to circumstances, progressively over the coming months.
If you believe you are one of these customers and you have not received a communication from us, please email us at firstname.lastname@example.org or contact our dedicated support team on 1800 541 820 between 8:30am and 5:00pm AEST if you require any additional information in relation to the refund program.