A disgraced insurer has been slapped with a $1.2 million fine for misrepresenting its junk funeral policies to Indigenous people.
The Aboriginal Community Benefit Fund (ACBF), owned by collapsed insurance company Youpla, was handed the penalty by the Federal Court on Tuesday.
The court found ACBF told plan holders they would receive a lump sum payment of their chosen benefit amount, when in fact they would only be reimbursed for expenses that had been incurred.
Youpla sold its dodgy insurance policies to Indigenous people across Australia for decades before coming to the attention of the 2018 banking royal commission and regulators.
The company collapsed in March last year, with more than ten thousand families losing out on their funeral plans.
