One of Australia's largest insurance brokers, Marsh Pty Ltd, has agreed to refund customers over $18,000 after incorrectly asserting a right to collect Goods and Services Tax on insurance premiums for part of 1999 and 2000 when in fact no such right existed.
Marsh has provided court-enforceable undertakings to the Australian Competition and Consumer Commission after investigations concerning GST liability for insurance payments.
The policies related to musical instrument cover, and to premiums collected in 1999 covering a period of insurance running past July 2000. The ACCC accepted that Marsh had not intended any price exploitation and was prepared to offer undertakings that included compliance training for staff.
The ACCC's investigations were triggered by a single complaint from an Adelaide consumer which revealed that 578 customers have been effected nationally and a total of $18,239 had been incorrectly collected for GST.
Marsh has acknowledged that its conduct may have raised concerns under the price exploitation and misleading and deceptive conduct provisions of the Act and has agreed that it will:
- rescind the claim for those customers who have not yet made the payment; or,
- for those customers who have made the payment, provide a full refund of the amount overcharged.
The ACCC acknowledges that Marsh acted promptly to resolve the matter and welcomes these undertakings because they not only correct the situation but also institute a trade practices compliance program to ensure that future conduct is not at risk of contravening the Act.