A policyholder will have premiums refunded after the Australian Financial Complaints Authority found she had not received notices about annual increases in the past two years.

Premiums rose each year under a stepped arrangement and because the life insurance policy had automatic consumer price index increases to the sum insured.

Insurer Resolution Life Australasia said it emailed the annual notices, but the complainant said they were not received for 2022 and 2023, and AFCA says the company has not produced copies or an example of its standard email.

The complainant had received notices through the post until 2021 and had expected that to continue. She had never accessed the insurer’s online portal.

AFCA says the policy document states a notice will be sent at least once a year setting out the premium and charges, and the Life Insurance Code of Practice requires an annual notice to be given.

“It is inconsistent with the policy terms, unfair and inconsistent with good industry practice for an insurer to increase premiums without telling the customer,” AFCA says.

“Accordingly, the insurer should not have collected increased premiums from the date of the 2022 notice onwards.”

Resolution Life Australasia has been ordered to refund the increases plus interest after the 2022 notice and provide a copy of its calculations to the complainant.

The policy was originally sold by a different insurer under a different name and brand, and the company that took over the policy in 2017 was sold in 2020 and renamed.

The complainant also said she never authorised the current insurer to take premiums by direct debit, but AFCA says the insurer renaming did not revoke or alter the previous authorisation.

The decision is available here.