Approximately 1,200 TAL clients will receive refunds after ASIC identified failings in its premium structures.
TAL Direct will be giving refunds totalling about $900,000 to Insuranceline branded funeral insurance customers.
TAL reported to ASIC that it had failed to “switch off” annual cost of living increases to premiums and cover after customers reached the age of 75 for the over 50s/55s insurance plans and 80 for the Insuranceline funeral plan.
If your clients are affected and eligible for a refund, they should expect TAL to get in touch offering a refund of the portion of premiums paid for the annual cost of living increases after the relevant ages of 75 or 80.
Alternatively, they may be offered a higher level of cover and higher premiums, with no refund.
Further, TAL will also refund affected policy holders whose policies have lapsed.
Those policy holders who choose the refund will have their insurance cover reduced to the level it would have been at if the error had not occurred, ASIC confirmed in a statement on Friday.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 17 Aug 2018Grandfathering is not in consumers' interests: KellBy Tim Stewart
- 17 Aug 2018Advisers can ‘professionalise’ clients’ philanthropyBy Lucy Dean and Killian Plastow
- 17 Aug 2018Standalone robo-advisers ‘will not attract’ HNW investorsBy Reporter
- 17 Aug 2018Assess super on value not fees, Rice Warner urgesBy Killian Plastow
- 16 Aug 2018ANZ taken to task over ‘misleading’ general adviceBy Reporter
- 16 Aug 2018Faith in adviser ethics fallsBy Reporter
- view all