ASIC has announced that RAA Insurance Limited (RAA) has paid $43,200 in penalties after ASIC issued four infringement notices for misleading representations made in television advertisements aired in South Australia.

ASIC was concerned the television advertisements, which were aired between December 2016 and June 2017, contained misleading representations about the ‘lifetime vehicle replacement’ benefit of RAA’s comprehensive car insurance policy.

ASIC was concerned that the advertisements gave consumers the impression that RAA would replace their car with a new one if the car was a total loss. However, important additional conditions applied in order to qualify for this benefit – the car must have been manufactured after 2014 and must have been insured exclusively with RAA since new. The advertisements did not, in ASIC’s view, adequately disclose or explain that these additional conditions applied.