Thousands of Woolworths customers are now eligible for a refund – what you need to know
Woolworths customers could be eligible for a refund after the insurer of its insurance products overcharged thousands of customers.
Some Australians who took out daily insurance between 2018 and 2023 are likely to be eligible for a refund.
It is understood that affected customers will be refunded an average amount of $27, including interest, after the error was discovered by Hollard Insurance, the company that employs Woolworths as its insurer.
A Woolworths spokeswoman told Daily Mail Australia they are working with customers to inform them of the error and the compensation they are eligible for.
“We have identified instances where certain promotional discounts were not properly applied to some Everyday Insurance auto policies,” the spokeswoman said.
‘As a result, we are in the process of contacting affected customers and refunding the additional costs, including any interest charged.
‘We apologize for any inconvenience this may have caused and together with Hollard we have improved processes to ensure this does not happen again in the future.’
It is understood that eligible customers will receive a detailed breakdown of the refund, including the interest amount and associated government fees.
Woolworths customers could be eligible for a refund after the supermarket giant overcharged shoppers who bought its insurance products (pictured, a customer in Sydney)
A recent Woolworths earnings briefing revealed the supermarket has more than a million insurance and mobile phone customers. The Australian reports.
It is believed that Hollard Insurance has already reported itself to the ASIC (Australian Securities and Investment Commission).
Everyday Insurance and Hollard occasionally offer discounts on various products, including car, home and rental premiums.
These discounts, managed by Hollard, are applied at the point of sale and are automatically recorded through the price calculation when the product is purchased by a customer.
The South African company is one of Australia’s largest general insurers and underwrites insurance products for several Australian companies, including Australian Seniors and Commonwealth Bank.
The company is responsible for underwriting Everyday Insurance products, including home and auto insurance.
It is also responsible for product design, pricing, risk assessment and claims management for the insurance policies offered to customers.
The error comes after the Australian Competition and Consumer Commission (ACCC) launched legal proceedings against Woolworths in September.
Some Australians who bought a daily insurance policy between 2018 and 2023 are likely to be eligible for a refund (stock image)
The proceedings, which have been filed in the Federal Court, allege that the supermarket giant misleads customers by offering discount prices on hundreds of supermarket products.
The ACCC alleges that the company made false or misleading statements about the prices of 266 products between September 2021 and May 2023.