“Junk insurance” may have hidden COVID-19 benefits

Most banks sold CCI at some point – a landmark 2019 report cites 11 that did so, including the big four banks as well as the Australian Central Credit Union, BoQ, Bendigo and Adelaide Bank, Citigroup, CUA, Latitude and Suncorp.

You have now stopped selling these policies to new customers. However, it remains unclear how many Australians are still paying for it, as stopping selling doesn’t mean the same thing as removing old loans and credit card accounts.

So, if you’ve never checked your credit statements or asked your bank to check if you’ve been stung by this particular type of insurance, now there are two good reasons to do so.

First, 580,000 Australians had been reimbursed more than $ 250 million for their near-worthless insurance through April this year, with an average reimbursement of $ 430. And there’s a lot more in the kitty. For example, NAB and CBA have both allocated more than $ 2 billion to consumer clean-up.

Some of it could be yours.

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You can either reach out to financial institutions directly and ask them if you paid for “supplementary insurance” or use one of the new consumer remediation services that will track down claims for you.

Second, if you lost your job or got sick during the pandemic, you might still be able to file a claim and get some benefit from a policy you never knew you had.

The ASIC website states, “The CCI usually covers repayments that you cannot make due to illness, death, disability or involuntary unemployment. If you have a CCI and are losing income as a result of any of this income, you should apply. Contact your lender or financial service provider if you are in financial need.

Joel Gibson is the author of KILL BILLS. Check out his savings segments on Nine Radio, TODAY or on Twitter @joelgibson.

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