ASIC has announced that Allianz Australia Insurance Limited and Allianz Australia Life Insurance Limited have refunded approximately 20,000 customers over $1.4 million in order to remedy two breaches of financial services law it reported in 2013.

Allianz advised ASIC that the first breach was a failure to refund stamp duty amounts owed to customers with consumer credit insurance policies. The policies were arranged by four of Allianz’s financial institution agents and affected policies issued since approximately 2003.

The second breach involved the overcharging of 2,591 customers who paid their insurance premium by monthly instalments. Since 2001, some customers had continued to be charged higher instalments by Allianz, despite having reduced their level of cover which resulted in a lower premium payable.

ASIC has not disclosed how or when the breaches were discovered.

The average refund for customer (including interest) is about $70. It appears that the administrative cost of the refund process will also be significant.