Less than half of $35 million in life insurance refunds for ANZ customers has been collected

Man sitting at computer talking on the phone, calling his life insurance provider about a refund.

The Australian Securities and Investments Commission (ASIC) is urging 40,000 Australians who bought life insurance through the formerly ANZ-owned OnePath to apply for refunds.

In 2018, ASIC found multiple legal breaches when it reviewed the direct phone sales tactics of this superannuation and insurance company between 2010 and 2016. These included failure to provide information about key policy exclusions, high-pressure incentivisation of purchases, and incorrect claims that sales calls were special offers for ANZ Bank customers.  

More than $35 million in refunds have been available since July 2019, which customers can access by getting in contact with insurance company Zurich (which bought OnePath from ANZ in 2017). However, ASIC deputy chair Karen Chester said only 41% of refunds have been banked.

“Despite OnePath offering refunds to around 26,000 consumers, less than one in two consumers have banked their cheque or arranged with OnePath for their refund to be paid into their bank account,” Chester said.

Refunds are available to those who held a OnePath life insurance policy which lapsed or was cancelled within two years of the sale.

To further address ASIC’s concerns about high cancellation rates and poor claim outcomes, OnePath is also reviewing past claims and complaints, and will waive certain conditions for affected customers who still hold active policies.

ASIC encourages ANZ and OnePath customers who have been contacted about the refund and are concerned about scams to call OnePath on 1800 290 572 for confirmation and more details.

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