The key measures apply to direct and brokered insurance offered through IAG’s NRMA Insurance, CGU, WFI, SGIO and SGIC brands
Image: IAG to support customers impacted by coronavirus. (Credit: Insurance Australia Group Limited.)
IAG, Australia’s largest general insurer, has announced a series of measures to support current customers as the coronavirus (COVID-19) continues to spread, and impact families, communities and businesses.
The key measures, which apply to direct and brokered insurance offered through IAG’s NRMA Insurance, CGU, WFI, SGIO and SGIC brands, are:
- Travel insurance refunds for any unused proportion of premiums, including full refunds where customers have not yet travelled and have not claimed under their policy, with no administration or cancellation fees;
- Deferred premium payments for up to six months for small businesses1 experiencing financial hardships;
- Refunds on the unused proportion of premiums for small businesses who cancel their insurance, with no administration or cancellation fees;
- Small businesses which need to close premises due to the impact of COVID-19 can maintain full insurance cover on the premises with no changes to premium; and
- Reduced timeframes in making payments to suppliers from 30 to no more than 15 business days.
These measures are explained in more detail on the following pages.
IAG Managing Director and CEO Peter Harmer said IAG is stepping up its response to help Australians through this uncertain and challenging time.
“We are working hard to implement these measures as soon as possible and we recognise that this is one more disaster our communities have to face in what has been a catastrophic start to 2020,” Mr Harmer said.
IAG is also employing additional people to bolster the company’s ability to respond to customer needs quickly and efficiently.
“More than 90 per cent of our people are now working from home, including our customer-facing staff who have been set up to work remotely since 2018.
“We are also employing up to an additional 400 people in the customer-facing parts of our business to help meet the needs of our customers at this time,” Mr Harmer said.
IAG expects these measures to be in place by Monday 30 March.
Further details on these measures will be available on IAG’s websites soon.
Removing travel insurance cancellation fees
- We have removed cancellation fees for travel insurance policies during the COVID-19 pandemic.
- Customers will be able to get a refund of all unused premium and they will not be charged any administration or cancellation fees. For example, if a customer hasn’t gone on their trip and hasn’t made a claim, we will provide a full refund of their premium. For a customer who returned home two weeks into a four-week trip, we will provide a 50% refund of their premium.
- This includes:
- CGU travel insurance policies – this applies for policies purchased on or after
23 January 2020 and where the customer has not commenced travel or had a claim accepted - NRMA Insurance, SGIO and SGIC travel insurance policies – this applies for policies purchased at any time where the customer has not commenced travel or had a claim accepted
- Refunds are available to all customers and will be processed as quickly as possible.
- To request a refund, customers should visit the brand’s website.
Insurance premium payment breaks and flexible payments for small business customers
- We are offering all small business customers the option to defer the payment of their annual or monthly premium for up to six months.
- This means they will continue to be covered by their existing insurance policy without needing to pay their annual or monthly premiums now.
- If they do need to make a claim during this time, the cost of their premium will be taken as part of their claims cost.
- This offer applies to all NRMA Insurance, CGU, WFI, SGIO and SGIC eligible small business package policies – excluding workers’ compensation customers.
- This offer is available until 30 September 2020. We will reassess this as needed.
- To apply for this offer small businesses should contact us or their broker.
- This offer is available to businesses with an annual turnover of less than $50 million and / or a sum-insured asset value definition of up to $10 million.
Full refunds for small businesses which cancel their insurance with no administration or cancellation fees
- We have removed cancellation fees for all eligible small business package policies during the COVID-19 pandemic.
- Customers will be able to get a refund of all unused premium and they will not be charged any administration or cancellation fees.
- This offer is available to businesses with an annual turnover of less than $50 million and / or a sum-insured asset value definition of up to $10 million.
- What’s an unused premium? For example, if you purchased an annual policy from January until December, but you need to cancel now, you will be refunded for the portion of premium from April until December.
Small businesses which need to close premises due to the impact of COVID-19 can maintain full insurance cover on the premises with no changes to premium
- Most insurance cover for business premises relies upon occupancy. Vacant premises are higher risk and typically attract higher premiums.
- We understand that some small business sites won’t be occupied at this time due to
COVID-19, so we will provide our existing customers with the option to maintain full cover on the premises with no changes to their premium or excess. - This means that small businesses that need to close premises due to the impact of
COVID-19 can maintain full insurance cover on the premises with no changes to their insurance premium. - This offer is available until 30 June 2020.
- This offer is available to businesses with an annual turnover of less than $50 million and / or a sum-insured asset value definition of up to $10 million.
Reducing supplier payment terms from up to 30 days to no more than 15 business days
- We understand this is a challenging time for many businesses, so to help support the businesses that support us, we’ve reduced our standard payment terms to 15 business days (down from our normal 30-day payment terms).
- This change will remain in place until 31 May 2020.
Source: Company Press Release