GIO Australia Limited and GIO General Limited will be refunding around $1.2 million to a number of policyholders, after admitting policyholders may have been misled about the benefits offered with comprehensive motor vehicle insurance bought between March 1996 and March 1997.
GIO has given enforceable undertakings to the Australian Competition and Consumer Commission which require it to refund excess payments and premiums to consumers who may have been misled by GIO brochures or its website about the existence or operation of GIO's reduced female driver excess, family discount, no-fault excess benefits and gold customer scheme.
The company also agreed to revise its consumer brochures, policy documents and Internet site after the ACCC action. 'In early 1997 GIO's web site was promoting benefits that had been withdrawn almost a year before,' ACCC Chairman, Professor Allan Fels, said today.
'The company was also tardy in withdrawing out of date brochures and other written material. 'The ACCC is taking a keen interest in how the Internet is used by business and this matter shows one of the key risks - not keeping websites up to date. 'I am pleased that GIO has acted in the best interests of its clients by offering refunds and improving its internal procedures.
But companies on the Internet should be aware that fines and damages may be imposed if information on their website is not updated and becomes misleading. 'Consumers have a reasonable expectation that information on the Internet is current and accurate.'
The Trade Practices Act includes fines for making false or misleading representations of up to $200,000 per offence in the case of a company and $40,000 for individuals. Other elements of the settlement require GIO to ensure all consumer brochures and policy documents are in plain English, to review its complaints handling mechanisms and compliance system and to publish a consumer information brochure with advice on purchasing motor vehicle insurance.
Customers entitled to refunds will automatically receive refunds in the mail. Inquiries can be made to GIO on 1800 351 669.