Insurance Australia Group (IAG) may lose a $40 million contract with the Victorian WorkCover Authority after an audit found irregularities in subsidiary company CGU’s claims documents. As a result three people, including the Victorian Claims Manager, “are no longer with our organisation”, IAG said in a statement.

“The inconsistencies applied to documentation only and do not relate to employers or employees who may be involved in Victorian Workcover Authority cases. Once discovered, we conducted a thorough investigation.”

“This is an unusual and regrettable circumstance for our group. However, in keeping with our business and professional ethics, we acted to address the issue promptly once identified.”