Optus to refund $2.4 million to mobile insurance customers

It will also write to past and present customers that may be affected

Optus Insurance Services is set to refund about $2.4 million to about 175,000 Optus mobile customers after failing to properly inform them of the type of insurance purchased.

ASIC said the telco reported a breach about its failure to provide certain customers with a Product Disclosure Statement and Financial Services Guide.

As a result, customers may not have been aware of certain key features and limitations of the insurance they purchased.

Optus will also be writing to about 500,000 past and present customers who may be affected.

The breach impacted customers who bought mobile phone insurance in store or by phone that occurred throughout a number of years.

Optus also reported four other breaches including where customers didn’t receive one month free insurance under a promotional offer they were entitled to; were incorrectly changed a premium for insurance during a ‘rain-check’ period; were not provided with the required information before purchasing an insurance policy over the phone; and were issued the wrong cover where some customers received the ‘device insurance’ cover instead of the more favourable and less expensive ‘Yes Cover.’

In response to ASIC’s concerns, Optus has also appointed an external firm to conduct a comprehensive review of its compliance functions to ensure ongoing compliance with its Australian financial services license obligations.

“Where consumers have suffered a detriment, it is important that remediation is undertaken, and that steps are taken to ensure that the business is operating in compliance with the relevant legal obligations,” ASIC deputy chairman, Peter Kell, said.

Join the PC World newsletter!

Error: Please check your email address.

Tags ASICoptus

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Julia Talevski
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?