nib (ASX:NHF)'s redemption sways ACCC to drop charges

Company News

by Michael Luu

Australian health care fund nib Group (ASX:NIH) has successfully convinced business regulator the ACCC to drop charges against the company in the Federal Court.

The corporation watchdog previously filed a lawsuit against nib, accusing the company of misleading, deceptive and unconscionable conduct associated with the MediGap Scheme.

The ACCC condemned nib’s failure to communicate to customers about the insurance company’s intention to removal of coverage for several optical healthcare procedures in 2015.

Since then, the company has made efforts to remedy damage related to the blunder and make amendments to its communications practices.

Nib tracked down a number of customers impacted by the information shortcoming to provide them with compensation packages.

For the past four years, nib has upgraded communications standards and maintained consistent form in notifying policy holders of upcoming policy adjustments that have the potential to financially affect customers.

As the ACCC recognised nib’s remediation efforts, the authority believed nib had earned the right to avoid litigation and withdrew prosecution against the company.

Shares in nib Group (ASX:NIH) are trading per cent 0.3 per cent lower at $6.22
 

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