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EMBARGOED: Time to act ahead of 30 June deadline for older 'add-on' insurance or CCI complaints

Australian Financial Complaints Authority

EMBARGOED 00:05AM AEST Tuesday 8 April, 2025

If you bought add-on insurance before July 2019 and believe it was unfairly sold to you, now is the time to act, the Australian Financial Complaints Authority (AFCA) says.

Consistent with AFCA’s time limits, the last date to lodge a complaint with AFCA about this type of older add-on insurance is 30 June 2025.

“It’s important that consumers know this deadline is fast approaching,” AFCA’s Lead Ombudsman, Insurance, Emma Curtis said. “If they have a complaint about older add-on insurance they should lodge it with us by 30 June .

“AFCA is very familiar with add-on insurance and the issues that arose in sales of this product,” Ms Curtis said. “AFCA is designed to be a free and simple alternative to a court or tribunal process, without people needing to pay for representation. If you have a complaint, please make sure you lodge by the deadline.”

Add-on insurance, also known as consumer credit insurance and sometimes called “junk” insurance, is a type of insurance sold with another product. Consumer credit insurance (CCI), for example, was sold along with car loans, novated leases, personal loans and home loans or alongside finance through credit cards.

This type of insurance was the subject of reviews and regulatory action by the Australian Securities and Investments Commission as early as 2011, with concerns raised about inappropriate and unfair sales practices and poor product design.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry also addressed these issues in its 2018 hearings and 2019 final report. Several firms subsequently implemented significant remediation programs, and most firms stopped selling such products.

This 30 June deadline does not apply to add-on insurance purchased after July 2019.  If you have a complaint about add-on insurance purchased after July 2019, however, you should not delay lodging a complaint with AFCA as time limits do apply.   

AFCA has more information on a dedicated web page about add-on insurance here.

 

About us:

About AFCA – The Australian Financial Complaints Authority (AFCA) is a non-government ombudsman service providing free, fair and independent help with financial disputes. AFCA is a one-stop-shop for consumers and small businesses who have a dispute with their financial firm, over things such as banking, credit, insurance, advice, investments or superannuation. Where an agreement cannot be reached between parties, AFCA can issue decisions that are binding on financial firms.

Contact details:

[email protected]