Zurich hit with $37,560 ASIC penalty | Australian Markets

Major insurer Zurich has been hit with two infringement notices totalling $37,560 for allegedly making false and deceptive statements to 2 policy-holders relating to their entitlement to benefit funds.

The Australian Securities and Investments Commission (ASIC) mentioned that in May 2024 Zurich declined two trauma insurance coverage claims advising the policyholders that their specific medical circumstances have been excluded, and no benefit was payable.

ASIC alleges that these statements have been false or deceptive because the coverage phrases relevant to the trauma cowl held by the policyholders didn’t exclude their medical circumstances they usually have been entitled to a benefit fee.

Zurich found these errors following a high quality assurance review and subsequently remediated the policyholders paying them their benefit entitlements with curiosity. Zurich additionally reported the matter to ASIC.

Zurich paid the infringement notices on 8 May 2025.

Insurance claims handling was a 2024 enforcement precedence and failures by insurers to deal pretty and in good religion with prospects is a 2025 enforcement precedence.