Some 20,000 customers have been refunded more than $1.4 million by Allianz Australia Insurance and Allianz Australia Life Insurance for two breaches of financial services law in 2013.

Allianz notified the Australian Securities and Investments Commission (ASIC) of the breaches and advised the regulator of its intention to undertake remedial action.

It told ASIC it had failed to refund stamp duty owed to customers with consumer credit insurance policies.

The policies were arranged by four of Allianz’s financial institution agents. Affected policies were issued since 2003.

The second breach involved overcharging 2591 customers who paid premiums by monthly instalments. From 2001, some customers continued to be charged higher instalments by Allianz, despite having reduced their levels of cover.

ASIC Deputy Chairman Peter Kell says financial companies must refund consumers where overcharging has occurred, irrespective of the amounts involved, “even where the monetary amounts for individual consumers may not be high”.

ASIC says Allianz has taken a “co-operative approach” in relation to the breaches.

“Allianz has taken its breach reporting obligations seriously in this matter,” Mr Kell said.

“Breach reporting is an important part of the regulatory framework, because it helps ASIC identify compliance problems and ensure consumer redress where necessary.”

Allianz is finalising a process to refund affected policyholders. An interest payment has been included in the refund amount.