News: IAG Australia's ASIC Says Unit Of Insurance Australia Group Penalised A$40 Mln By Federal...

June 30 (Reuters) - Australian Securities & Investments Commission:

• INSURANCE AUSTRALIA LIMITED, UNIT OF INSURANCE AUSTRALIA GROUP, PENALISED A$40 MILLION BY THE FEDERAL COURT
• COURT FOUND IAL MADE FALSE OR MISLEADING REPRESENTATIONS TO OVER 600,000 CUSTOMERS BETWEEN MARCH 2014 AND SEPT 2019
• IAL PENALISED FOR FAILING TO HONOUR DISCOUNT PROMISES MADE TO CUSTOMERS WHO HELD NRMA BRANDED INSURANCE POLICIES
• COURT FOUND IAL FAILED TO DELIVER FULL AMOUNT OF LOYALTY AND NO CLAIMS BONUS DISCOUNTS THEY HAD PROMISED TO CUSTOMERS
• IAL WAS ORDERED TO PAY ASIC’S COSTS OF THE PROCEEDINGS
• PRICING ALGORITHM IMPLEMENTED BY IAL APPLIED DISCOUNTS TO A HIGHER BASE PREMIUM THAN IMPACTED CUSTOMERS WOULD OTHERWISE HAVE BEEN CHARGED
• IAL ADMITTED IT CONTRAVENED LAW AND PARTIES JOINTLY SUBMITTED THAT PENALTY SOUGHT BY ASIC WAS APPROPRIATE

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