Tower Insurance has signed a settlement agreement with the Commerce Commission to finalise the issue on miscalculated multi-policy discounts it owed to some customers.
In March 2016, Tower has overcharged some of its customers by failing to properly apply multi-policy discounts.
In line with this, Tower is calling on some FinTel customers, who held multiple policies between July 2003 and October 1 2014, to identify themselves and confirm their eligibility for a refund.
Tower said eligible FinTel customers who make contact before Jan. 16 2018 will receive a payment of $25 per year or part-year that they should have received a multi-policy discount.
As part of the settlement agreement, unclaimed funds will be donated to the Citizens Advice Bureau, which according to ComCom will receive approximately $75,000.
“The commission accepted Tower’s submission that the cost of calculating refunds due to FinTel customers affected prior to August 2014 was onerous and disproportionate to the likely refund owed, and the payment to the CAB was appropriate to avoid Tower receiving a windfall from the miscalculations,” Commerce Commission head of investigations Ritchie Hutton said.
ComCom said Tower has already refunded 96% of the nearly 24,000 customers overcharged between October 2014 and September 2016, including FinTel, Kiwibank and TSB customers with policies underwritten by Tower.
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