QUICK CONTACT

Get in touch

Sem fringilla ut morbi tincidunt augue interdum velit. Consequat interdum varius sit amet mattis vulputate enim nulla aliquet. Sed risus pretium quam vulputate dignissim suspendisse in.

Add On Insurance

Motorcycle add-on insurance refunds

We have undertaken a thorough review of our customers who purchased certain add-on insurance products in motorcycle dealerships between 1 October 2013 and 31 October 2017. This is because some customers were sold add-on insurance which may have provided little or no value for various reasons, depending on the policy and their own individual circumstances.

These investigations included all add-on insurance policies that NM offered including:

1. Consumer Credit Insurance (CCI); and
2. Guaranteed Asset Protection (GAP) insurance

Many of these insurance policies will have now expired.

Following our review, we may offer/have offered you a refund of your policy premium plus interest.

How do I contact NM Insurance?

Please contact us via the following:

Phone 02 8920 1157

Email contact@nminsurance.com.au

Website www.nminsurance.com.au

What is add-on insurance?

CCI insurance: means Consumer Credit Insurance (CCI or sometimes called loan protection insurance). CCI provides cover if you cannot meet your credit repayments under a loan. The policy usually provides cover in the event you become disabled (cannot work due to illness or injury), you unexpectedly become unemployed or for loss of life. If you have CCI, you will have one or more of the above covers. Your insurance policy schedule will state which covers you have taken out.

GAP Insurance: means Guaranteed Asset Protection Insurance (GAP or sometimes called shortfall insurance). If your vehicle is written off, GAP insurance covers the difference between the amount you’re paid by your comprehensive motor vehicle insurer and the loan balance outstanding on your finance agreement; this is also commonly referred to as a ‘gap’.

Why will NM Insurance write to me?

If you purchased a CCI policy:

We believe your CCI policy may provide little or no value to you. It is possible that one or more of the below circumstances may apply to you:

  • You were not in permanent or gainful employment when you purchased the insurance and therefore would not have been eligible for the policy. Accordingly you were not entitled to make a claim under the insurance policy for disablement, accidental injury or involuntary unemployment; or
  • You were under the age of 25 when you purchased the insurance policy and you had purchased the life cover component. This could because you were unlikely to have had dependents who would rely on the insurance to meet loan repayments if you died or could no longer earn an income.

If you purchased a GAP policy:

We believe your GAP policy may provide little or no value to you. It is possible that one or more of the below circumstances may apply to you:

  • No Gap: there was unlikely to be a gap because you borrowed less than 90% of the value of the motorcycle. In other words, you paid for more than 10% of the vehicle upfront. This means your GAP policy may either have been of limited benefit or even may have been be unsuitable for you; or
  • Overlapping cover: you may have obtained a replacement motorcycle under your comprehensive motor vehicle policy, which means you could not claim under the GAP policy; or
  • Over-insurance: the GAP policy limit which you purchased is either higher than your loan amount or the period of insurance that your GAP policy covers is longer than the period of your loan; or
  • Low-value: you took out a loan under $5k which means that the gap when you purchased the motorcycle was too small and the insurance would not be of value; or
  • Your loan has terminated and therefore a GAP policy will not be of value.

What is the refund made up of and will I receive interest?

We are refunding the gross premium which you paid on your insurance policy (which includes stamp duty and any levies) plus interest on the premium. The interest is for the period between the date of your policy commenced and until 21 days from the date of our letter to you. When you receive a refund, you will also receive Schedule which explains how the refund was calculated.

Does NM still provide add-on insurance?

No. In October 2017, we ceased distributing all add-on insurance products.

When will NM be contacting customers?

We will write to all affected customers providing a cheque for the refund. We expect this will begin in June 2019. In the meantime, if you have any questions, please contact us on 02 8920 1157 or email contact@nminsurance.com.au.

If you received a letter and cheque refund from us but do not bank your cheque within a month, we will contact you by telephone.

I have not received a letter. Can I request a refund?

Yes of course. You may be entitled to a refund if you bought CCI or GAP insurance when you purchased your motorcycle from a dealership between 1 October 2013 and 31 October 2017.  Please contact us directly and we will ascertain whether you are entitled to a refund. When you contact us, please have  your policy number to hand. This will be clearly stated on your Schedule of Insurance.

Where can I get more information?

You can call us on 02 8920 1157 or email us at contact@nminsurance.com.au

ASIC’s MoneySmart website also provides information which you may find useful: https://www.moneysmart.gov.au/insurance/car-insurance/add-on-insurance.

What if I am not happy with the refund provided?

If you are unhappy with the refund, or any other dealings with NM Insurance, please contact us on 02 8920 1157 or contact@nminsurance.com.au. Accepting a refund will not affect your right to make a complaint about our products or service.

If you are not satisfied with NM’s handling of your complaint, you may lodge a complaint with the Australian Financial Complaints Authority (AFCA). To contact AFCA, visit www.afca.org.au or call 1800 931 678.