High Court penalises AA Insurance $6m for misleading customers

FMA head of enforcement Margot Gatland says the judgment "sends a strong message to the industry". (Image: File)

Mon, 07 Oct 2024

The High Court has ordered AA Insurance New Zealand to pay $6.175 million for misleading customers and failing to apply discounts. Justice Laura O’Gorman’s penalty judgment on Oct 3 followed proceedings brought by the Financial Markets Authority (FMA) in June 2023.The penalty relates to separate offences between 2005 and 2020 that were self-reported by AA Insurance (AAI) after an audit.FMCA breachesThe insurer failed to apply multi-policy and membership discounts, and guaranteed no-claims bonuses, affecting more than 380,000 el...

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