Add On Insurance
Motorcycle add-on insurance refunds
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Motorcycle add-on insurance refunds
We have undertaken a thorough review of our customers who purchased certain add-on insurance products in motorcycle dealerships between 1 October 2013 and 31 October 2017. This is because some customers were sold add-on insurance which may have provided little or no value for various reasons, depending on the policy and their own individual circumstances.
1. Consumer Credit Insurance (CCI); and
2. Guaranteed Asset Protection (GAP) insurance
Many of these insurance policies will have now expired.
Following our review, we may offer/have offered you a refund of your policy premium plus interest. We will be contacting customers entitled to a refund progressively over the coming weeks.
What is add-on insurance?
CCI insurance: means Consumer Credit Insurance (CCI or sometimes called loan protection insurance). CCI provides cover if you cannot meet your credit repayments under a loan. The policy usually provides cover in the event you become disabled (cannot work due to illness or injury), you unexpectedly become unemployed or for loss of life. If you have CCI, you will have one or more of the above covers. Your insurance policy schedule will state which covers you have taken out.
GAP Insurance: means Guaranteed Asset Protection Insurance (GAP or sometimes called shortfall insurance). If your vehicle is written off, GAP insurance covers the difference between the amount you’re paid by your comprehensive motor vehicle insurer and the loan balance outstanding on your finance agreement; this is also commonly referred to as a ‘gap’.
Why will NM Insurance write to me?
If you purchased a CCI policy:
We believe your CCI policy may provide little or no value to you. It is possible that one or more of the below circumstances may apply to you:
If you purchased a GAP policy:
We believe your GAP policy may provide little or no value to you. It is possible that one or more of the below circumstances may apply to you:
What is the refund made up of and will I receive interest?
We are refunding the gross premium which you paid on your insurance policy (which includes stamp duty and any levies) plus interest on the premium. The interest is for the period between the date of your policy commenced and until 21 days from the date of our letter to you. When you receive a refund, you will also receive Schedule which explains how the refund was calculated.
Does NM still provide add-on insurance?
No. In October 2017, we ceased distributing all add-on insurance products.
When will NM be contacting customers?
We will write to all affected customers providing a cheque for the refund. We expect this will begin in June 2019. In the meantime, if you have any questions, please contact us on 02 8920 1157 or email firstname.lastname@example.org.
If you received a letter and cheque refund from us but do not bank your cheque within a month, we will contact you by telephone.
I have not received a letter. Can I request a refund?
Yes of course. You may be entitled to a refund if you bought CCI or GAP insurance when you purchased your motorcycle from a dealership between 1 October 2013 and 31 October 2017. Please contact us directly and we will ascertain whether you are entitled to a refund. When you contact us, please have your policy number to hand. This will be clearly stated on your Schedule of Insurance.
Where can I get more information?
ASIC’s MoneySmart website also provides information which you may find useful: https://www.moneysmart.gov.au/insurance/car-insurance/add-on-insurance.
What if I am not happy with the refund provided?
If you are unhappy with the refund, or any other dealings with NM Insurance, please contact us on 02 8920 1157 or email@example.com. Accepting a refund will not affect your right to make a complaint about our products or service.
If you are not satisfied with NM’s handling of your complaint, you may lodge a complaint with the Australian Financial Complaints Authority (AFCA). To contact AFCA, visit www.afca.org.au or call 1800 931 678.