This includes charging premiums on cancelled policies, treating policies as if they were terminated when they should have remained in force and some customers being charged excess premiums because AIA miscalculated inflation adjustments.
AIA's behaviour exacerbated and prolonged the harm to customers who were already in vulnerable circumstances. Customers took out insurance to reduce stress and financial impact in a time of significant hardship and uncertainty, but when some of them needed the cover they thought they had, it was denied.
The FMA said AIA has admitted the breaches at an early stage, and the matter would now proceed directly to a penalty hearing before the High Court in Auckland, thus avoiding the necessity and cost of a trial. The watchdog would seek a penalty of $700,000.
No comments:
Post a Comment