The Australian Securities and Investments Commission (ASIC) has reminded motorists insured with Liban Net to check their policies after the Federal Court of Australia found company director Gaby Haddad guilty of contempt of court.

Mr Haddad had failed to comply with court deadlines to provide ASIC with the details of all insurance policies issued by Liban Net, in its name or in the name of Australian Private Insurance (API).

ASIC began a Federal Court civil action against Liban Net and Mr Haddad in June.

A spokesman said ASIC was concerned that Liban Net had offered and issued car insurance to members of the public without the authority to do so, as well as falsely claiming that the insurance policies issued by API were underwritten by Zurich.

Mr Haddad was ordered to pay $5000 and all of ASIC’s costs of the contempt proceedings by Justice Peter Hely of the Federal Court of Australia in Sydney.

While Mr Haddad eventually complied with the order on September 9, the court found his conduct should not go unpunished. The main action has been listed for further directions on December 9.

Australian Private Insurance and API should not be confused with API Insurance Services, a business wholly owned by the Australian Post-Tel Institute (SA & NT) Incorporated.