-IAG admits error in insurance processing.
Global Banking News - 18 September 2012
Insurance agency, IAG (NYSE: IAG) has admitted insurance processing errors while the company worked out insurance claims for damaged homes in Christchurch.
The firm said that it was planning to pay out as much as USD3.48m in compensation after admitting the error. It acknowledged that it may have breached the Fair Trading Act.
The firm said that it had miscalculated the sum insured in 643 previously paid out total-loss insurance claims. The same error would also affect the renewal of 150,755 current policies, the firm said.
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