Woolworths customers could be entitled to a refund after the insurer of its insurance products overcharged thousands of shoppers.
Some Australians who purchased Everyday Insurance policies over a five-year period between 2018 and 2023 are likely to be eligible for a refund.
It is understood affected customers will be refunded an average amount of $27, including interest, after Hollard Insurance, the firm Woolworths employs as its insurance underwriter, identified the error.
A Woolworths spokeswoman told Daily Mail Australia they are working with customers to inform them of the error and the compensation they are entitled to.
“We have identified instances where certain promotional discounts were not applied correctly on some Everyday Insurance motor policies,” the spokeswoman said.
‘As a result, we are in the process of contacting affected customers and refunding them any additional charges, including any interest assessed.
“We apologize for any inconvenience this may have caused and, together with Hollard, have improved processes to ensure this does not happen in the future.”
It is understood that eligible customers will receive a detailed breakdown of the refund, including the amount of interest and associated government charges.
Woolworths customers could be entitled to a refund after the supermarket giant overcharged shoppers who bought its insurance products (pictured, a shopper in Sydney)
A recent Woolworths earnings report revealed that the supermarket has more than one million insurance and mobile customers. The Australian information.
It is understood that Hollard Insurance has already self-reported to ASIC (Australian Securities and Investments Commission).
Everyday Insurance and Hollard occasionally offer discounts on various products, including auto, home, and homeowner premiums.
These discounts, which are managed by Hollard, are applied at the point of sale and are automatically recorded through the price calculation when purchased by a customer.
The South African firm is one of Australia’s largest general insurance providers and underwrites insurance products for a number of Australian companies, including Australian Seniors and Commonwealth Bank.
The company is responsible for underwriting Everyday Insurance products, including home and auto insurance.
He is also responsible for product design, pricing, risk assessment and claims management of insurance policies offered to clients.
The error comes after the Australian Competition and Consumer Commission (ACCC) launched legal proceedings against Woolworths in September.
Some Australians who bought Everyday Insurance policies over a five-year period between 2018 and 2023 are likely to be eligible for a refund (file image)
The suit, filed in the Federal Court, alleges that the supermarket giant deceived customers through discounts on hundreds of supermarket products.
The ACCC has alleged that the company made false or misleading statements about the prices of 266 products between September 2021 and May 2023.