Tigerair Australia has received a ticking off from ASIC for promoting a travel insurance policy that wasn’t what it claimed to be. Pic: Mark Cranitch/News Corp Australia
BUDGET carrier Tigerair has been caught out telling porkies to passengers who paid for travel insurance when booking their flight on the airline’s website.
The “pre-ticked” travel insurance claimed to cover passengers for flight delays, cancellations and rescheduling but a check of the 15,000 word product disclosure statement revealed that not to be the case.
The Australian Securities Investment Commission got involved, and as a result Tigerair has removed the offending statements by ACE Insurance from its websites.
Tigerair has cleaned up claims on its booking site, telling passengers insurance would cover them for delays and cancellations. Picture: Mark Cranitch/News Corp Australia.Source:News Corp Australia
“Insurance and other financial products should not be promoted in a way that misleads consumers about the price and benefits of the product,” said ASIC deputy chairman Peter Kell.
“Consumers should be confident they are paying the price and getting the benefits that they understand they are getting.
“ASIC will continue to monitor advertising to ensure it’s not misleading.”
Spokesman for consumer advocacy group CHOICE, Tom Godfrey, said the matter highlighted the perils of purchasing “pre-ticked travel insurance”.
“While it’s important to have international travel insurance, purchasing the wrong policy can leave you high and dry and thousands of dollars out of pocket,” said Mr Godfrey.
“Don’t let yourself be tricked by the airlines’ one-size-fits-all travel insurance.”
Tigerair has been in the process of rebuilding its image since being bought by Virgin Australia. Picture: James Morgan.Source:Supplied
He said to read the fine print would take the average person over an hour, which was longer than the “time-out” function on an airline booking site allowed.
“It’s particularly important for consumers with pre-existing medical conditions to take their time to read the detail of the policy and if in doubt contact their insurer to find out what is, and what isn’t covered,” Mr Godfrey said.
Booking sites operated by airlines have previously incurred the wrath of watchdogs for “drip pricing” or forcing travellers to pay a higher price than that promoted.
Tigerair Australia CEO Rob Sharp with airline staff. Pic: Supplied.Source:Supplied
Jetstar and Virgin Australia were last year found guilty on several counts of drip pricing after the Australian Competition and Consumer Commission took them to court.
The airlines now inform passengers upfront about additional fees for paying by credit or debit card, and how they can avoid the surcharge.
Mr Godfrey said airlines should ditch pre-ticked extras altogether.
Tigerair Communications Manager Vanessa Regan said as soon as Tigerair became aware of the concerns raised in May, they took immediate action “working closely with ACE insurance”.
ACE Travel and Consumer Business Manager Chris Newing said they fully cooperated with ASIC.
“Our team continuously looks for ways to improve our products and our communication with customers,” said Mr Newing.
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