Woolworths’ Everyday Insurance to refund car policy customers after underwriter’s price bingle

Daniel Newell
The Nightly
Woolworths on Monday said the car insurance overcharging bungle was discovered as part of a recent pricing review across its products.
Woolworths on Monday said the car insurance overcharging bungle was discovered as part of a recent pricing review across its products. Credit: Pixel-mixer/Pixabay (user Pixel-mixer)

Woolworths has started repaying car insurance policyholders after it was revealed one of its underwriters had been overcharging customers.

The grocery giant did not disclose the total number of Everyday Insurance policyholders it will refund, but given the error dates back as far as 2018 it is believed tens of thousands of customers could have been affected.

Woolworths’ Everyday Insurance platform was launched in 1999 and provides home and car cover through South African underwriter Hollard Insurance.

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It also offers pet and travel insurance and has grown in popularity, with customers who sign up given 10 per cent off an in-store shopping every month.

Woolworths on Monday said the car insurance overcharging bungle was discovered as part of a recent pricing review across its products.

“We have identified instances where certain promotional discounts were not correctly applied on some Everyday Insurance car policies, by our underwriter, Hollard Insurance,” a spokesman said.

“As a result, we are in the process of contacting the impacted customers and refunding the additional charges, including any calculated interest.

“We apologise for the inconvenience this may have caused and together with Hollard, we have improved processes to ensure this does not happen in the future.”

The average amount to be refunded to customers affected between 2018 and 2023 is $27, including interest.

Everyday Insurance and Hollard occasionally offer discounts on car, home and landlords policy premiums which are promotional discounts and applied at the point of purchase.

These discounts are managed by Hollard and executed automatically through the pricing calculation at the point of purchase or renewal.

Hollard has self-reported the overcharging error to the Australian Securities and Investments Commission.

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