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Allianz Australia Penalised for Misleading Travel Insurance Information

Understanding the Implications of Allianz's $16.8 Million Fine

Allianz Australia Penalised for Misleading Travel Insurance Information?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a significant ruling, Allianz Australia Insurance and its subsidiary, AWP Australia, have been fined a total of $16.8 million for providing misleading information about their travel insurance products.
The Supreme Court of New South Wales found that between 2016 and 2018, the companies misrepresented the extent of coverage available to consumers, leading to potential misunderstandings about policy benefits.

The Australian Securities and Investments Commission (ASIC) highlighted that Allianz advertised maximum travel insurance benefits without adequately disclosing sub-limits, terms, conditions, or exclusions that could limit those benefits. This lack of transparency may have led consumers to believe they had more comprehensive coverage than was actually provided.

Sarah Court, ASIC's Deputy Chair, emphasised the importance of accuracy in insurance product promotions, stating that the ruling underscores the need for the insurance industry to be transparent and accurate when selling and promoting their products. She noted that thousands of customers were at risk of obtaining insurance that they believed offered far more cover than it did.

For Australian travellers, this case serves as a crucial reminder to thoroughly review and understand the terms and conditions of travel insurance policies. It's essential to be aware of any sub-limits or exclusions that may affect coverage, ensuring that the policy meets individual needs and expectations.

Consumers are encouraged to consult resources such as the ASIC website for more information on choosing appropriate travel insurance and to remain vigilant against potential misrepresentations in insurance offerings.

Published:Tuesday, 30th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Term Life Insurance:
A life insurance that provides a cover for a specific period of time - usually one to five years or until the insured reaches age 65 or 70.