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ASIC secures $14.7m in insurance refunds

ASIC has secured more remediation for consumers who were mis-sold add-on car loan insurance

The corporate regulator has secured another $14.7 million in remediation for consumers who were mis-sold add-on car loan insurance.

The Australian Securities and Investments Commission says six companies will offer refunds of between $143,700 and $7.2 million to more than 30,000 customers sold add-on insurance with little or no value.

The move takes the total compensation secured by ASIC over the issue past $130 million, with firms including Allianz, QBE, Swann Insurance and Suncorp having already agreed to large-scale refund programs.

Among customers eligible for refunds are those who bought guaranteed asset protection insurance despite being unlikely to need it, young people sold life cover even though they were unlikely to need it, and customers mis-sold mechanical breakdown insurance.

'Many people who bought a car or motor bike with add-on insurance may be entitled to a refund," ASIC commissioner Sean Hughes said.

"We encourage people to check and contact their insurers."