We all heard the bold claims from South African insurer YOUI. They made a move into the NZ market two years ago on a mission to revolutionise our car insurance market – well they’ve certainly done that. But there’s more to their market grab than meets the eye – YOUI has been charged with defrauding prospective customers by billing for unwanted or unconfirmed insurance policies as soon as a quote is requested. What were they thinking!? We’re told hundreds of victims are awaiting refunds from unwanted car insurance policies – just be careful how you drive in the meantime, the payout on any car insurance accident claim on those policies seems unlikely! Our friends at www.insuranceNEWS.com.au are up with the news and issued the following report on 15 August
Youi will plead guilty to misconduct charges, including making false sales pitches, filed by the New Zealand Commerce Commission.
The commission, New Zealand’s competition watchdog, filed 15 charges against the insurer in the Auckland District Court last week following a year-long investigation into allegations of unscrupulous sales tactics.
The South African-owned insurer is alleged to have committed the acts between July 2014 and February this year.
“Youi has co-operated with the commission’s investigation and has indicated it intends to plead guilty to the charges,” the commission says in a statement. “As this matter is before the court, the commission cannot comment further at this time.”
A spokesman for the commission told insuranceNEWS.com.au a date for the court hearing will be known in coming weeks.
Youi allegedly failed to inform customers they are not obliged to pay for unsolicited insurance invoices and gave false or misleading information during sales phone calls.
People requesting policy quotes were told they needed to provide credit card and bank account details, and unauthorised direct debits were then made from the accounts.
“From the point the issues were brought to our attention we co-operated fully with the commission and speedily implemented changes to our business practices that had fallen short of customer expectations, service standards and legal requirements,” Youi CEO Danie Matthee said. “We unreservedly apologised to all affected customers.”
Youi has notified the Insurance Council of New Zealand about actions taken to improve procedures.
JohnnyB
Unbelievable! Who knew about this it’s never been in any of the news so who’s paying who now! Interesting when a giant corporate runs off the rails no ones talking about it but if a quality panelbeater ever makes a small mistake on an invoice the auditors are at the door by lunchtime! This is outragous. Its not a mistake its straight out fraud and a rip off. These guys have stolen peoples money they should be jailed.
Debs
I couldn’t agree more, it brings shame on the entire insurance sector. Thank goodness Youi’s a direct to market insurer, brokers wouldn’t want anything to do with them now. I’m not sure about your analogy with panelbeater’s invoice errors Johnny – not even in the same ball-park! But I take your point and am aware the the sever price pressure on the whole collision repair industry, if the rate’s I read about are accurate it would seem unsustainable – so what’s the end game for panelbeaters in NZ?
Suze
Totally! If a panel shop had done what YOUIs done, it would’ve been shut down and straight to jail. Small business always get’s nailed especially in the collision repair biz, but corporates get away with murder. Anyway the question about the end game for the panelbeating trade is obvious . Big brand insurers are now trying to squeeze blood out of a stone. It happened in Aussie 5 years ago, and presto, suddenly IAG starts buying up all the struggling panelshops on the cheap. Others just got shut down and went out of business. So now insurance companies own or totally control all the big shops and it’ll happen here to. See one of the worst chains Gemini Collision group is already in Auckland. I rest my case!
Villi
What a total scam. Lucky we have changed to a broker and have Crash Management looking after our insurance claims and repairs anyway so don’t need this rip off insurance. Thanks guys.
Shane Mitchell
saw this in the paper last week. Youi are crooks and should get slammed for this.