Getting a refund for junk insurance has never been easier

If you want a refund for add-on junk insurance, here’s what you need to know.

health insurance form

If you have a sneaking suspicion that you have been sold add-on insurance or a warranty with your car purchase, or new credit card, you’re not alone. But have you ever thought that it might be worthless?

We call this insurance junk insurance, but you might know it as add-on insurance, including consumer credit insurance (or CCI). CCI is typically added to your loan or credit card to cover some of your repayments if you lose your job, are injured or sick, or pass away.

The problem is, consumer advocates and ASIC have found CCI is often expensive, low value, and full of exclusions and conditions which surprise people when they try to make a claim.

ASIC recently announced that the Commonwealth Bank and insurers QBE and Virginia Surety will repay a total of over $26 million to people who were mis-sold add-on insurance including CCI.

Consumer Action’s website has assisted people in claiming more than $700,000 in refunds on add-on insurance (and extended car warranties) which they did not need or want.

If you have bought add-on junk insurance and want to ask for a refund, visit If you are not sure, check your loan documents to see if you have been sold one of these products.

CCI – what to look out for
Consumer Action has seen a lot of bad-value CCI. If you are considering buying CCI, here are a few things to look out for:

  • Do you already have similar insurance, such as life insurance, total and permanent disability (TPD) and trauma insurance and/or income protection insurance? Many people already have this in their superannuation.
  • Will it cover the type of work you do? Often, people who work casually or part-time, or who are self-employed, can’t claim unemployment cover under CCI.
  • Is there an age cut off? Most CCI policies won’t cover you once you reach a certain age, typically 65.
  • Do you have any pre-existing medical conditions? If so, you probably won’t be covered if your claim results from that medical condition.
  • Is it worth it? The premiums can be very high and in some cases the amount you can claim will be less than the premiums you will pay.

The Consumer Action Law Centre is an independent, not-for-profit, campaign-focused, casework and policy organisation. If you have a question you’d like to ask, please send it to



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    8th Sep 2017
    Wow - so many suckers out there
    8th Sep 2017
    Does it cover insurance on electrical items like refrigerators
    8th Sep 2017
    No when its buggered go and buy another one
    9th Sep 2017
    Don't think so Mrs Wong
    Those are expensive but don't think it's unethical or misleading
    8th Sep 2017
    All I can say is that just about every person I know who bought extended warranty, especially on electrical items, has found the warranty was not worth the paper it was written on. However one time I bought an extended warranty from the manufacturer on a new car (the warranty was extended from 3 years to 5 years). At about the 4 1/2 year mark Ford honoured the warranty without any issue and replaced the steering rack, a repair that (according to the dealer) would have cost me over $2000.
    9th Sep 2017
    I take extended warranties on some appliances which have been very useful. Bought new cooktop and the blown element was worth more than the warrany let alone have someone come out and fix it. Fan in oven ceased and that was replaced under extended warranty. Toaster jammed up with no extended warranty but as it was only a week out of warranty it got replaced with a new one.

    Never taken extended warranty on a car. Never paid for insurance on a loan either. I was given $100 credit when I got my first mobile many years ago so used it to insure the phone as I had no other use for it.
    10th Sep 2017
    Thanks everyone the fridge was fixed for a nominal charge so all is well again
    12th Sep 2017
    am i the only person who can remember then reputable companies, trades, etc. gave a warranty on their products and work, because things DIDN'T go wrong.