Allianz Australia and subsidiary AWP Australia have repaid $10 million to 31,500 customers who were “mis-sold” travel insurance.

The remediation was announced by the Australian Securities and Investments Commission (ASIC) last week.

The alleged mis-selling took place on Allianz’s own websites and those of its distributors including airlines and travel agents such as Expedia.

ASIC says the misconduct involved selling policies to consumers who were not eligible to make a claim, partially paid travel insurance claims, and selling policies on Expedia websites for higher premiums than on a standalone basis.

The regulator has already started civil penalty proceedings in the Federal Court in relation to some aspects of the matter and alleged breaches of the Corporations Act and the ASIC Act.

However, ASIC notes that “Allianz and AWP’s agreement to remediate their customers is not an admission by either Allianz or AWP that they have breached the law”.

Allianz says that in 2018 it began a “detailed review” of the content on some websites selling travel insurance products.

The website content has since been addressed and Allianz says it worked with ASIC to implement a “comprehensive” remediation program.

“This has resulted in the payment of $10.1 million to 31,482 customers, an average of $321 per customer,” the spokesman said.

“We have also made a charitable donation through a community benefit payment of around $400,000.”