In a surprising turn of events that could signal a financial windfall for many Australians, a vice principal's routine morning led to an unexpected discovery of a refund, thanks to a segment on 'junk insurance' he caught on a TV program.

This revelation has sparked a conversation about the potential refunds many Australians might be entitled to without even realising it.

Andrew, the vice principal in question, was not a regular viewer of morning television, but on this fateful day in January 2023, the TV was left on, likely by one of his children. As he tuned in, a segment discussing the intricacies of junk insurance caught his attention.

Junk insurance is a term used to describe insurance policies that are tacked onto loans and credit cards, often without the full understanding or consent of the consumer.

These policies, which include consumer credit insurance, mortgage protection insurance, and tyre and rim insurance, can be unnecessary or provide little to no value.

A vice principal received a $6,500 refund for ‘junk insurance’ after discovering from a TV segment that he was eligible. Credits: Shutterstock

The issue of junk insurance was brought to light during the banking royal commission in 2019, which led to a directive for financial institutions to earmark a staggering $10 billion to refund customers who had been sold these questionable insurance products.

Andrew's curiosity was piqued as he recalled taking out two car loans about a decade ago.

He decided to investigate further with the help of Claimo, a company that specialises in assisting Australians to recover funds from junk insurance policies.

‘There were two (junk insurance claims) for two different vehicles. One was ... insurance protection for the car loan,’ he narrated.

One of the loans was from Esanda, which is now part of ANZ, while the other was from St George Bank.

‘The Esanda one, I definitely had no idea I was paying for something,’ he continued.

‘The St George one, I think I did, but I wasn’t 100 per cent sure what it was... (the bank employee) basically said it protected my loan, but then, apparently, the actual policy wouldn’t have done anything if I’d have to use it.’

The process, which involved providing a few more details to Claimo, resulted in Andrew receiving a $6,500 refund just a few months later.

According to him, the timing couldn't have been better, as his wife was transitioning from maternity leave to part-time work.

‘She’s also studying, so before all the interest rate hikes, we’d budgeted (for)... her working three days a week and studying, paying for that, and... to get that extra money was a really good surprise,’ Andrew said.

Claimo indicated that up to one million Australian first responders, government workers, and teachers could be eligible for a junk insurance refund.

These individuals are often targeted with car leases and other financial products that tout tax deductions, only to find themselves saddled with unnecessary add-ons.

‘When these staff find out they’ve been duped into extra add-ons they didn’t want or need, they’re pretty riled up about it,’ Nathan Mortlock, Director of Claimo, stated.

‘We even see examples of police officers getting told that they had to have this insurance on their home loans.’

Andrew mentioned that obtaining his refund was simple, and didn't incur any expenses to determine if he was entitled to any funds.

‘I certainly wouldn’t have realised they would pay (me) $6,500 that I didn’t know (about),’ he asserted.

‘It’s worth doing it, even if the answer’s nothing’s there, there could be something there you’re not aware of.’

In a similar vein of unexpected refunds, stories of Australians receiving reimbursements they didn't realise they were entitled to are making headlines.

From a vice-principal surprised with a $6,500 junk insurance refund to individuals like the man who found himself several thousands richer after a stress-free reimbursement process, these tales underscored the importance of being vigilant about potential financial entitlements.

Both instances highlight the significance of staying informed about one's financial affairs, and the potential windfalls that may await those who take the time to review their accounts and policies.

Key Takeaways

• A vice principal received a $6,500 refund for junk insurance after discovering he was eligible thanks to a segment on TV.
• Junk insurance is often unnecessary, and was a significant issue identified by a 2019 banking royal commission, leading to financial institutions setting aside $10 billion for refunds.
• Claimo, a company specialising in junk insurance refunds, helped the vice principal recover his money by taking a 30 per cent commission plus GST on the claim.
• The refund was timely for the vice principal, whose wife was coming off maternity leave and working part-time, also assisting in covering their expenses amidst interest rate hikes.

Have you had a similar experience with junk insurance or unexpected refunds? We'd love to hear your stories and any tips you might have for fellow seniors below.

 

[Aussie all the Way]

I've been doing this for YEARS. It's called trailing Commissions as well go to Companies like iRefund and they will get all your commissions back. Nothing New here

 

[Aussiecris]

I've been doing this for YEARS. It's called trailing Commissions as well go to Companies like iRefund and they will get all your commissions back. Nothing New here

Is new for me, never knew this was a thing

 

[sketchy01]

I got a massive 0.06c the other day! Try not to spend it too quickly!!!!

 

[Aussie all the Way]

When I was working and had everything insured for the most amount, I used to get a cheque for about $350 every year, so it is well worth doing if you have lots of insurance. So since retiring we are home most of the time so have dropped the amounts of insurance because stuff is older and not worth as much.

 

[bodusmobile47]

How do you get
On to claimo

 

[Rob44]

Check what your superannuation is doing.

A friend of mine paid or was paid superannuation by his employer only to find that after many years the insurance bill he hadn't known and hadn't approved had left a mere $8000 of superannuation to claim on his retirement.

My wife had a similar experience when she began superannuation payments; the superannuation company elected by her employer was dumping her money into insurance and for what?? She hadn't requested the insurance and she found it was very awkward to end her superannuation payments to that outfit and shift her super to something perhaps more respectable.

Thanks, Paul Keating, for forcing us into private superannuation when at one time we all had a government-guaranteed old-age pension available via either a National Insurance Scheme or, later, taxation (we still paid for our OAP during our working lives). However, he's got his government superannuation of $500 000 plus perks per year because he happened to be a Prime Minister. And he's still mouthing off in public!

 

[Aussie all the Way]

Check what your superannuation is doing.

A friend of mine paid or was paid superannuation by his employer only to find that after many years the insurance bill he hadn't known and hadn't approved had left a mere $8000 of superannuation to claim on his retirement.

My wife had a similar experience when she began superannuation payments; the superannuation company elected by her employer was dumping her money into insurance and for what?? She hadn't requested the insurance and she found it was very awkward to end her superannuation payments to that outfit and shift her super to something perhaps more respectable.

Thanks, Paul Keating, for forcing us into private superannuation when at one time we all had a government-guaranteed old-age pension available via either a National Insurance Scheme or, later, taxation (we still paid for our OAP during our working lives). However, he's got his government superannuation of $500 000 plus perks per year because he happened to be a Prime Minister. And he's still mouthing off in public!

All you had to tell them was you did not want the Insurance and you wouldn't have paid it, that is what I did, never paid any insurance on anything like Super etc.

 

[Aussie all the Way]

How do you get
On to claimo

Look up iRefund they were great for getting all the trailing commissions back and a nice surprise for you when the cheque comes in

 

[Rob44]

Indeed; all you have to do is tell them you don't want insurance .......if you are not informed by one's employer that the insurance payment is built into the superannuation and you are left dealing with a complex web-site that hinders understanding............as many web-sites do either by deliberate design or by default.

 

[Aussie all the Way]

Indeed; all you have to do is tell them you don't want insurance .......if you are not informed by one's employer that the insurance payment is built into the superannuation and you are left dealing with a complex web-site that hinders understanding............as many web-sites do either by deliberate design or by default.

I'm talking about years ago before you had to do anything on line back in the 80's, you got your paperwork for Super and filled it out and it had a question about Insurance YES/NO, that is or was how simple it was.

 

[gamiry]

I've been doing this for YEARS. It's called trailing Commissions as well go to Companies like iRefund and they will get all your commissions back. Nothing New here

here's something new,,,,, thisc company and claimo insist on a mobile phone number...No use to the deaf or people who live in phone black spots.

 

[Aussie all the Way]

here's something new,,,,, thisc company and claimo insist on a mobile phone number...No use to the deaf or people who live in phone black spots.

I have never had to contact these people via phone just filled in paperwork once and that was it, just got the cheque every year.

 

[GillyH]

Check what your superannuation is doing.

A friend of mine paid or was paid superannuation by his employer only to find that after many years the insurance bill he hadn't known and hadn't approved had left a mere $8000 of superannuation to claim on his retirement.

My wife had a similar experience when she began superannuation payments; the superannuation company elected by her employer was dumping her money into insurance and for what?? She hadn't requested the insurance and she found it was very awkward to end her superannuation payments to that outfit and shift her super to something perhaps more respectable.

Thanks, Paul Keating, for forcing us into private superannuation when at one time we all had a government-guaranteed old-age pension available via either a National Insurance Scheme or, later, taxation (we still paid for our OAP during our working lives). However, he's got his government superannuation of $500 000 plus perks per year because he happened to be a Prime Minister. And he's still mouthing off in public!

We can't afford to pay everyone a pension when they retire this is why Super was introduced the Uk & other countries have had a scheme for over 65 years. I do think it is time they removed politicians getting a pension on top of their super. We will save millions!

 

[TheresaD]

I was caught out by commonwealth bank on a personal loan. Joined the class action & received nothing. So got duped there as well

 

[Phantom55]

how about elaborating on how a citizen/victim can inquire further on this matter. THAT would be a handy ,and informative item for your followers

Check what your superannuation is doing.

A friend of mine paid or was paid superannuation by his employer only to find that after many years the insurance bill he hadn't known and hadn't approved had left a mere $8000 of superannuation to claim on his retirement.

My wife had a similar experience when she began superannuation payments; the superannuation company elected by her employer was dumping her money into insurance and for what?? She hadn't requested the insurance and she found it was very awkward to end her superannuation payments to that outfit and shift her super to something perhaps more respectable.

Thanks, Paul Keating, for forcing us into private superannuation when at one time we all had a government-guaranteed old-age pension available via either a National Insurance Scheme or, later, taxation (we still paid for our OAP during our working lives). However, he's got his government superannuation of $500 000 plus perks per year because he happened to be a Prime Minister. And he's still mouthing off in public!

Paul was just doing his job ( feathering ones nest )its the job that has the entire parliament in agreement PERKS DEPT) and they get to use it straight away no waiting til retirement age...still we elected them...

 

[Phantom55]

Check what your superannuation is doing.

A friend of mine paid or was paid superannuation by his employer only to find that after many years the insurance bill he hadn't known and hadn't approved had left a mere $8000 of superannuation to claim on his retirement.

My wife had a similar experience when she began superannuation payments; the superannuation company elected by her employer was dumping her money into insurance and for what?? She hadn't requested the insurance and she found it was very awkward to end her superannuation payments to that outfit and shift her super to something perhaps more respectable.

Thanks, Paul Keating, for forcing us into private superannuation when at one time we all had a government-guaranteed old-age pension available via either a National Insurance Scheme or, later, taxation (we still paid for our OAP during our working lives). However, he's got his government superannuation of $500 000 plus perks per year because he happened to be a Prime Minister. And he's still mouthing off in public!

Yes people forget that a lot of. pensioners actually paid into govt pension plans(compulsory) at the time, extra to income tax, and this was to ensure that when we get old and retire we will get a pension, then sometime in the sixties they changed the rules so that pensions became like "welfare "available to some, assets testing decided. The deductions weren't refunded, just absorbed.for people of that era the pension was a right (paid for by the wage earner) from then the pension became welfare not paid forby the individual

 

[Abby2]

We can't afford to pay everyone a pension when they retire this is why Super was introduced the Uk & other countries have had a scheme for over 65 years. I do think it is time they removed politicians getting a pension on top of their super. We will save millions!

"it is time they moved politicians getting a pension on top of their super."
Agree but it is not like to happen - as Phantom55 said the pollies are doing their job - feathering their own nest.

 

[Gsr]

Over the years I’m sure we would have been paying extra insurance on car, house, other loans. But since we have disposed of most of the paperwork for these loans how do we now prove a claim for any of this refund. I’m sure there will be a lot of people in the same boat, so to speak.

 

[Aussie all the Way]

Over the years I’m sure we would have been paying extra insurance on car, house, other loans. But since we have disposed of most of the paperwork for these loans how do we now prove a claim for any of this refund. I’m sure there will be a lot of people in the same boat, so to speak.

Unfortunately the past is the past they don't go back and get the commissions, only now and the future.