AFCA finds MLC failed to give proper notice of rate increases

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The complainant disputed the changes to his policy, saying he was misled about how the increases tied to annual rises in benefits would work. MLC also made underlying premium rate increases and the complainant says that he was misled into believing those would not happen.

The AFCA found that MLC did not mislead the customer but determined that it should have warned him about premium increases in accordance with its policy terms and Australian law..

But the ombudsman determined that MLC had not notified him of the change to premiums in 2014, 2015 or 2016 in accordance with its policy terms or under the Corporations Act.

The Australian Financial Complaints Authority has found that the insurer did not give notice of a change in premium rates and as such, it was not entitled to make these changes. The complainant is to have his premiums returned for the years 2014-2016.

Published:Thursday, 19th May 2022
Source:

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Australian Insurers Report Record Profits Amid Public Scrutiny

20 Nov 2025: Paige Estritori

The Australian general insurance industry has reported an after-tax profit of $7.3 billion for the last financial year, marking its strongest performance in over a decade. This significant profit surge is attributed to lower-than-expected catastrophe losses and robust investment returns. However, this financial success has sparked public discourse regarding the fairness of pricing practices and the overall perception of the industry. - read more

ASIC Highlights Compliance Risks in Insurers' Claims Handling Practices

20 Nov 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has identified significant weaknesses in the claims handling practices of several insurers, raising concerns about potential compliance breaches. The regulator's recent review points to deficiencies in the oversight of expert reports and inadequate communication with consumers regarding cash settlement offers. - read more

Australian Insurers Brace for Earnings Slowdown After Record Profits

20 Nov 2025: Paige Estritori

After achieving a return on equity (ROE) of 19% in the last financial year-the highest in a decade-Australian general insurers are preparing for a moderation in earnings growth. Consultancy firm Finity projects that the industry's ROE will decrease by six percentage points to 13% in the current financial year, aligning with the target range of 10% to 15%. - read more

Rising Liability Costs Put Pressure on Australia's Leisure Sector

20 Nov 2025: Paige Estritori

The Australian Amusement Leisure & Recreation Association (AALARA) has raised concerns over the escalating costs of public liability insurance, which are placing significant pressure on amusement and recreation operators across the country. This warning follows the Insurance Council of Australia's (ICA) recent call for reforms to civil liability laws. - read more

New Report Highlights Insurance Challenges for Australian Small Businesses

20 Nov 2025: Paige Estritori

A recent report by the Australian Chamber of Commerce and Industry (ACCI) has revealed that small businesses in Australia are paying up to 30% more for their insurance premiums due to taxes and levies imposed by state and territory governments. This financial burden is leading to a worrying trend where an increasing number of small businesses are either underinsuring or forgoing insurance altogether. - read more

Click for more Insurance News

Insuring your most valuable asset

While many people would consider their home or their car to be their most valuable asset, it's your ability to earn an income that is most important in shaping your financial future. Statistically, two thirds of working Australians will suffer an injury or illness that will sideline them for 90 days or more. The majority of these people would not be able to pay their mortgage or meet car finance and other loan commitments without adequate income insurance.

... compare rates & options ...