Perth Vice Principal Receives $6500 Junk Insurance Refund He Had No Idea He Was Owed
In an eye-opening revelation that has left many Australians astounded, a Perth deputy school principal stumbled upon a financial windfall he never knew was due to him. Andrew, the unsuspecting vice principal, received an astonishing $6500 refund from what is known as ‘junk insurance’, a term unfamiliar to many until now. This incident has shed light on a pervasive issue affecting millions across the nation, revealing that vast numbers of Australians might be sitting on a treasure trove of unclaimed insurance refunds.
The Sunrise Revelation
It was a twist of fate one January morning in 2023, as Andrew found himself watching Sunrise, a morning TV show he seldom tunes into. The broadcast that day featured a segment on junk insurance, an insurance type associated with loans and credit cards that often proves to be either unnecessary or devoid of any real value. This segment covered everything from consumer credit insurance to mortgage protection insurance and even tire and rim insurance. Little did Andrew know, this segment was about to unveil a significant financial opportunity for him.
After the broadcast, fueled by curiosity, Andrew decided to explore whether he could be entitled to a refund for junk insurance. He had previously taken out two car loans about a decade ago. Prompted by the information from Sunrise, he reached out to Claimo, a company specializing in retrieving junk insurance refunds for Australians. Claimo took up the cause on Andrew’s behalf, initiating investigations and, surprisingly, confirmed that Andrew was indeed eligible for a refund — a hefty $6,500 for two different vehicle loans.
The Unwelcome Surprise of Junk Insurance
The concept of junk insurance is not new, but its widespread impact has only come into the spotlight following the banking royal commission’s findings in 2019. The commission unearthed questionable sales practices, prompting financial institutions to earmark a staggering $10 billion for reimbursing individuals who had unknowingly purchased junk insurance. This includes a wide array of policies sold alongside loans and credit card agreements, often without clear justification or necessity.
In Andrew’s case, the insurances associated with his car loans through Esanda (now merged with ANZ) and St George Bank were identified as unnecessary. Despite paying for these insurances, they would offer him no real benefit, an aspect he was blissfully unaware of until Claimo stepped in.
A Windfall When Most Needed
For Andrew, the refund arrived at a crucial time. With his wife transitioning from maternity leave to part-time work while pursuing studies, the financial boost provided by the unexpected refund couldn’t have been more timely. It underscored the value of checking for potential refunds on junk insurance, an action Andrew had never considered previously but one that yielded substantial benefits.
Millions More Could Be Eligible
According to Claimo, Andrew’s case is far from an isolated incident. It’s estimated that up to a million Australian first responders, government workers, and teachers could be eligible for similar refunds. Often, these groups have been targets for sales of unnecessary add-ons like junk insurance, under the guise of advantageous tax deductions or essential coverage.
This story not only underscores the importance of vigilance when dealing with financial products but also highlights a vast, untapped opportunity for Australians to reclaim money rightfully theirs. As Claimo Director Nathan Mortlock succinctly puts it, many individuals find themselves inadvertently signed up for insurance and other add-ons they neither wanted nor needed. Now, with increased awareness and resources like Claimo at their disposal, reclaiming these funds is becoming a reality for thousands.
For Andrew, his foray into the world of junk insurance refunds was a serendipitous journey catalyzed by a chance viewing of a morning TV segment. For others, it serves as a potent reminder to scrutinize financial agreements and seek out any potential refunds. As Andrew himself advises, “It’s worth doing even if the answer is: there’s nothing, it could be something you’re not aware of.”
Priyanka 
Divya