RACQ acknowledges ASIC proceedings
RACQ acknowledges the legal proceedings launched in the Federal Court by the Australian Securities and Investments Commission (ASIC) against wholly owned subsidiary RACQ Insurance (RACQI).
ASIC is alleging that RACQI’s product disclosure statements for insurance policies were misleading in their description as to how insurance premiums were to be calculated, in contravention of the ASIC Act. This relates to the description of the application of certain policy discounts to the premium for optional insurance covers.
The proceedings follow RACQI’s self-identification and self-reporting of these matters to ASIC, and the outcome of RACQI’s broader pricing promises review in 2022.
The disclosure statements were revised in March 2022 to address the issue.
RACQI is issuing refunds to eligible members and is working closely with ASIC through the remediation program. The majority of refunds for this matter are expected to be issued by June.
As a member-owned Club, we take our responsibilities and obligations seriously and will use this opportunity to ensure our members are better served as we move forward.
RACQ apologises for these errors as they are not in keeping with our high standards and values.
The Club has been undertaking a significant investment in its systems and processes that will deliver improved outcomes for members and result in stronger risk management, simplified products, and easier processes for its people.
Given the matter is before the court we are unable to comment any further.
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The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the Product Disclosure Statement (PDS) and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.