ASIC has announced that TAL Direct Pty Ltd (TAL) has offered refunds totalling $900,000 to to 1,200 Insuranceline branded funeral insurance customers.
The policy terms required TAL 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.
TAL self-reported to ASIC that it had failed to switch off the annual cost of living increases.
TAL is contacting eligible customers, offering:
- a refund of the portion of premiums paid for the annual cost of living increases after the relevant ages (75 or 80), or
- to maintain the higher level of cover and higher premiums, with no refund.
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.
TAL will also refund affected policy holders whose policies have lapsed.