AAP
Elders Insurance has paid about $5.3 million in complete to more than 9,000 customers who were underpaid on their engine van insurance claims.
The Australian Securities and Investments Commission (ASIC) mentioned on Wednesday that in September 2010 Elders had suggested ASIC that Elders over a few years had inadvertently underpaid customers on total-loss claims for market-value insured engine vehicles.
Up to September 2010, Elders' insurance process covered the cost of stamp task on the buy of a deputy van of the same value.
The cost of stamp task was about 3 per cent of the buy price.
However, Elders had unsuccessful to add the stamp task amounts when profitable the claims.
Elders was alerted to the underpayments by fortitude of a matter by the Financial Ombudsman Service in Aug 2010.
ASIC mentioned Elders subsequently undertook to pay the excellent amounts, inclusive interest, to authorised customers.
So far, 9,307 customers have received a complete of $5,287,370 in payments.
Elders is still looking to meeting about 350 one-time customers.