Southern Cross cautioned by FMA for neglecting to apply advertised discounts
Both entities have accepted they had breached the fair dealing provisions of the Financial Markets Conduct Act by making false or misleading representations. The FMA determined the cause of each issue was due to poor controls and/or technical errors. The FMA found no evidence of deliberate misconduct.
Southern Cross Pet Insurance initially reported to the FMA in November 2022 some of the contraventions. Further enquiries from the FMA and an internal review in the wider Southern Cross Group established the extant of the contraventions.
SCPI failed to correctly apply the following discounts:
· Additional pet discount
· Direct debit discount
· Southern Cross membership discount.
SCMCS failed to correctly apply the following discounts:
· Free child discount
· Healthy lifestyle rewards discount
· Low claims discount.
The total amount of Southern Cross Pet Insurance premiums overcharged was $424,508, affecting 7,542 customers. Southern Cross Medical Care Society overcharged $161,547 across 1,957 customers.
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