The Advertising Regulatory Board (ARB) has found The Hollard Insurance Company Ltd guilty of misleading advertising regarding its cash back benefit.
The decision follows a consumer complaint alleging that the insurer’s promotional materials failed to clarify crucial eligibility criteria, leading to misinterpretations among longstanding policyholders.
The dispute arose when a policyholder who had held life cover since 2006 attempted to claim a 10% cash back benefit advertised on Hollard’s official website. The promotion, which rewards customers with periodic payouts if their premiums remain up to date, was presumed to apply to all policyholders. However, the complainant was informed that the benefit was only applicable to policies issued after 2018, a crucial restriction not explicitly highlighted in the advertisement.
Hollard defends its position
Responding to the complaint, Hollard maintained that the misunderstanding stemmed from the consumer’s failure to examine the policy's terms and conditions thoroughly. The insurer asserted that its promotional materials adhered to legal guidelines and that the benefit was clearly outlined for policies issued post-2018. However, the ARB’s assessment revealed that Hollard’s advertising did not sufficiently distinguish between eligible and ineligible policyholders, leading to confusion.
The ARB determined that Hollard’s placement of the cash back benefit details within the FAQ section contributed to the misleading nature of the advertisement. The regulatory body argued that longstanding customers could reasonably assume they qualified for the payout, given the absence of explicit exclusions. The ruling stated, “The reasonable long-standing consumer would therefore understand that if your policy is active, paid up to date, and not through Regent Life, the benefit applies.” This assumption, however, proved inaccurate for pre-2018 policyholders.
Mandatory website amendments ordered
In its final ruling, the ARB instructed Hollard to amend its website and marketing materials to prevent further confusion regarding the Hollard cash back benefit. The insurer is required to explicitly state that the benefit applies only to policies initiated from 2018 onward.
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