Zurich Australia penalised for allegedly making false statements to policyholders

The Australian Securities and Investments Commission (ASIC) has penalised Zurich Australia for allegedly making false or misleading statements. The statements concerned two policyholders and their entitlement to payments following trauma insurance claims.

In a media release, the regulator said the two infringement notices totalled more than $37,560 and were paid earlier this month.

“Zurich declined two trauma insurance claims advising the policyholders that their particular medical conditions were excluded, and no benefit was payable,” said the release.

The release said Zurich discovered these errors following a quality assurance review. The insurer, said the regulator, remediated the policyholders paying them their benefit entitlements with interest. Zurich also reported the matter to ASIC.

“Insurance claims handling was a 2024 enforcement priority and failures by insurers to deal fairly and in good faith with customers is a 2025 enforcement priority,” said ASIC.

Zurich provides life insurance products including life cover, total and permanent disability (TPD) insurance, income protection and trauma cover.