Approximately 20,000 customers have been refunded over $1.4 million by Allianz Australia Insurance Limited and Allianz Australia Life Insurance Limited.

Allianz notified ASIC of two breaches of financial services law in 2013, and advised of its intention to undertake remedial action, which led to the refunds.

Allianz advised that it had failed to refund stamp duty amounts owed to customers with consumer credit insurance policies. The policies were arranged by four of Allianz's financial institution agents and affected policies issued since approximately 2003.

The second breach involved the overcharging of 2,591 customers who paid their insurance premium by monthly instalments. Since 2001, some customers had continued to be charged higher instalments by Allianz, despite having reduced their level of cover which resulted in a lower premium payable.

'Financial firms must act to refund consumers where overcharging has occurred. This is important even where the monetary amounts for individual consumers may not be high,' ASIC Deputy Chairman Peter Kell said. 

ASIC acknowledges the cooperative approach taken by Allianz in relation to these matters.

'Allianz has taken its breach reporting obligations seriously in this matter. Breach reporting is an important part of the regulatory framework, as it helps ASIC identify compliance problems and ensure consumer redress where necessary.'

Allianz has implemented and will soon finalise a process to refund the affected policy holders. An interest payment has been included in the refund amount.

Any Allianz customer with queries or concerns about these matters should contact Allianz in the first instance on 1300 692 046.