ASIC Sues IAG's RACQ Insurance for Misleading Premium Practices

According to ASIC, RACQ Insurance inflated the 'last period premium' figures in these notices, leading customers to believe that their premiums had increased less than they actually had. This practice potentially resulted in customers overpaying for their insurance policies. Despite receiving early complaints from customers, RACQ allegedly continued this practice for several years.

The misleading pricing affected various types of insurance, including home, car, caravan, boat, and pet insurance. ASIC is seeking civil penalties, declarations, and public orders against RACQ Insurance. The company, which self-reported the issue in 2024 following media inquiries, has acknowledged the proceedings and stated that it is cooperating with ASIC while conducting its own internal review.

This case underscores the importance of transparency in the insurance industry. For truck owners and fleet managers, it highlights the necessity of carefully reviewing renewal notices and questioning any discrepancies in premium calculations. Ensuring that you are not overpaying for your insurance coverage is crucial, especially in an industry where operating costs are continually rising.

As a best practice, always compare your current premium with previous periods and seek clarification from your insurer if you notice any inconsistencies. Additionally, consider consulting with independent insurance advisors to ensure that you are receiving fair and accurate information regarding your policy premiums.