Technology

Expedia embroiled in Allianz Australia court case over alleged misleading travel insurance sales

Allianz Australia Insurance has been taken to court over alleged misleading travel insurance sales through three websites run by Expedia.

The Australian Securities & Investments Commission (ASIC) commenced civil penalty proceedings in the Federal Court against Allianz and its related party AWP Australia last Wednesday.

The conduct concerns alleged breaches of the Corporations Act and the ASIC Act relating to misleading and deceptive conduct and general licence obligations, and involves three websites owned by Expedia: www.expedia.com.au, www.lastminute.com.au and www.wotif.com.au.

ASIC alleges that, for certain travel insurance products sold through the Expedia websites between February 2015 and September 2018, Allianz failed to correctly disclose the basis upon which premiums were calculated in the product disclosure statements that were made available on the websites.

It’s also alleged that Allianz and/or AWP allowed the sale of insurance to customers who were ineligible to make claims under the policies, and that either or both brands allowed the Expedia websites to misuse a quote from the Department of Foreign Affairs and Trade about the importance of purchasing travel insurance.

ASIC is seeking declarations and pecuniary penalties against Allianz and AWP.

A spokesperson for Expedia told Travel Weekly the company was aware of the court proceedings, but declined to comment any further.

Travel Weekly has contacted Allianz for comment.


Image source: iStock/Frogman1484

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